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Inflation Calculator
Calculate the impact of inflation on purchasing power and future value of money
Future Value
$114.75
In 2024 dollars
Purchasing Power Loss
12.86%
Over 4 years
Real Value Today
$100.00
Equivalent purchasing power
Inflation Impact
Moderate
Within acceptable range
Calculation Parameters
Historical Data (2020-2024)
Using Historical Rates: $119.12
Total Inflation: 19.12%
Average Annual Rate: 4.47%
Reverse Calculator
Required Inflation Rate: 4.66%
Inflation Scenarios
| Scenario | Future Value | Power Loss |
|---|---|---|
Low Inflation (2%) (2.00%) | $108.24 | 7.62% |
Moderate Inflation (3.5%) (3.50%) | $114.75 | 12.86% |
High Inflation (5%) (5.00%) | $121.55 | 17.73% |
Very High Inflation (8%) (8.00%) | $136.05 | 26.50% |
Hyperinflation (15%) (15.00%) | $174.90 | 42.82% |
💡 Inflation Quick Facts
• Fed target inflation rate: 2% annually
• Rule of 72: Money loses half its value in 72/3.5 = 20.6 years
• Historical US average (1913-2023): ~3.3%
• Highest US inflation: 23.7% (June 1920)
• Deflation last occurred: 2009 (-0.4%)
Recent US Inflation Rates
2000: 3.40%
2001: 2.80%
2002: 1.60%
2003: 2.30%
2004: 2.70%
2005: 3.40%
2006: 3.20%
2007: 2.80%
2008: 3.80%
2009: -0.40%
Price Impact Analysis
Transportation
Future Price (2024): $4.02
Price Increase: $0.52
Food
Future Price (2024): $3.32
Price Increase: $0.43
Food
Future Price (2024): $4.42
Price Increase: $0.57
Food
Future Price (2024): $2.87
Price Increase: $0.37
Entertainment
Future Price (2024): $13.77
Price Increase: $1.77
Food
Future Price (2024): $5.16
Price Increase: $0.66
Housing
Future Price (2024): $1,721.28
Price Increase: $221.28
Transportation
Future Price (2024): $40,163.31
Price Increase: $5,163.31
Basket Summary
Current Total: $36,529.24
Future Total (2024): $41,918.14
Total Increase: $5,388.90
Year-by-Year Inflation Impact
| Year | Nominal Value | Real Value | Purchasing Power | Cumulative Inflation |
|---|---|---|---|---|
| 2020 | $100.00 | $100.00 | 100.00% | 0.00% |
| 2021 | $103.50 | $96.62 | 96.62% | 3.50% |
| 2022 | $107.12 | $93.35 | 93.35% | 7.12% |
| 2023 | $110.87 | $90.19 | 90.19% | 10.87% |
| 2024 | $114.75 | $87.14 | 87.14% | 14.75% |
Understanding Inflation
What is Inflation?
- • General increase in prices and decrease in purchasing power
- • Measured by Consumer Price Index (CPI)
- • Normal part of healthy economic growth
- • Federal Reserve targets 2% annually
- • Can be caused by demand, supply, or monetary factors
Protecting Against Inflation
- • Invest in assets that appreciate with inflation
- • Consider inflation-protected securities (TIPS)
- • Real estate often hedges against inflation
- • Stocks historically outpace inflation long-term
- • Avoid holding too much cash during high inflation
💡 Key Insights
Rule of 72
At 3.50%, prices double every 20.6 years
Silent Tax
Inflation erodes wealth without direct taxation
Compound Effect
Small rates compound significantly over time