CPI-backed inflation data
Historical and projected inflation rates reference Bureau of Labor Statistics CPI data and Federal Reserve forecasts.
Updated monthly after BLS CPI releases.
Inflation Calculator
Understand how inflation erodes purchasing power over time. Calculate future prices, compare historical values, and plan your finances accordingly.
Compliance & privacy
Inputs stay in your browser. Projections use publicly available government data.
Future Prices
Project cost increases
Real Value
Today's dollars worth
Historical Data
Compare across years
Categories
Sector-specific rates
Inflation-aware planning workflow
Capture baseline spending, run scenarios, compare assets, and turn insights into action plans.
1. Capture your baseline
List today’s expenses by category, then lock in the inflation assumptions that match your market.
2. Run future-value scenarios
Project 5-, 10-, and 20-year outlooks to see how much more cash flow each goal needs.
3. Compare assets vs. inflation
Stack investment returns or savings rates against inflation so you know which buckets are falling behind.
4. Align hedges and automation
Hand off the results to ROI, savings, or AI calculators to schedule raises, price increases, and portfolio shifts.
Inflation Impact Calculator
0%Historical Avg: 3.0%10%
Quick Examples
Impact Analysis
Future Cost
$1,344
Today's Value
$744
Purchasing Power Impact
Current Amount:$1,000
After 10 years:$1,344
Loss in Value:-34.4%
Real Value:$744
Inflation Insights
Remember to factor inflation into long-term financial planning.
Future Cost: $1,344 · Value Erosion: 34.4%
Value Projection Over Time
Worked example: Retirees protecting spending power
We modeled a couple living on $78k per year to show how inflation adjustments keep their withdrawal plan intact.
Scenario inputs
- Profile
- Couple in their early 60s, $1.1M invested, spending $6,500/month after tax
- Baseline inflation
- 3.2% blended CPI projection based on BLS and BEA data
- Category weights
- Healthcare 20%, groceries 18%, housing 30%, travel 12%, miscellaneous 20%
- Target purchasing power
- Maintain current lifestyle for 25 years with <5% variance
- Strategy
- Link withdrawals to CPI, apply higher adjustments for healthcare bucket, and shift more to TIPS
Planner takeaways
- •Plan recommends a 3.6% withdrawal increase next year to offset healthcare inflation spikes.
- •Adding a 1.5% cushion prevents shortfalls if CPI runs hotter than PCE for several quarters.
- •Export the schedule to ROI and savings-goal calculators so monthly transfers and alerts stay synced.
Based on BLS CPI-U historical averages. Actual inflation may vary.
How people use the inflation calculator
Case studies that link this tool with ROI and savings workflows.
Retiree protecting fixed income
Couple living on pensions and dividend income.
- •Timeline: Needs 25-year view to keep withdrawals ahead of healthcare inflation.
- •Plan: Model 4% healthcare inflation and send the shortfall to ROI calculator to test conservative portfolios.
- •Result: Shift a portion of cash to TIPS and staggered CDs while keeping equity exposure for long-term growth.
Global family budgeting for tuition
Parents saving for education in two currencies.
- •Timeline: Tuition due in eight years across USD and EUR expenses.
- •Plan: Use this calculator to normalize exchange-rate inflation, then send the numbers to the savings-goal planner for automation.
- •Result: Locked in monthly transfers indexed to CPI and set alerts for when inflation exceeds 4%.
Understanding Inflation
What is Inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation and avoid deflation to keep the economy running smoothly.
Key Concepts:
- •CPI (Consumer Price Index): Measures average change in prices paid by consumers for goods and services
- •Core Inflation: Excludes volatile items like food and energy for a clearer trend
- •Purchasing Power: The value of currency expressed in terms of the amount of goods or services one unit of money can buy
US Historical Averages
- Last 100 years (1924-2024):3.0%
- Last 50 years (1974-2024):3.8%
- Last 20 years (2004-2024):2.5%
- Last 10 years (2014-2024):2.9%
- 2022 Peak:8.0%
Category Variations
- Healthcare:5-6% avg
- Education:6-8% avg
- Housing:3-4% avg
- Food & Beverages:3-4% avg
- Technology:-2% avg
Real-World Impact of Inflation
$100 in 2000 equals:
- • $178 in 2024 (78% inflation)
- • You need $178 today for same purchasing power
- • Average annual inflation: 2.4%
$1,000 monthly income:
- • Loses $30/month at 3% annual inflation
- • After 10 years: worth only $744 in today's money
- • After 20 years: worth only $554 in today's money
Inflation data stack
Official sources for inflation rates and purchasing power calculations.
Consumer Price Index (CPI) Data
Official CPI measurements from Bureau of Labor Statistics
Personal Consumption Expenditures (PCE) Index
The Fed's preferred inflation measure
International Inflation Data
Global inflation comparison data
Cadence: BLS CPI monthly, Fed projections quarterly, Treasury rates daily.
Important inflation calculator disclaimer
Projections are for educational purposes only.
- ⚠️Calculations use historical CPI data and standard compounding formulas. Actual inflation varies by spending patterns.
- ⚠️Future inflation is unpredictable. Use conservative estimates for financial planning.
- ⚠️Consult a financial advisor for personalized inflation-hedging strategies.
Strategies to Protect Against Inflation
Investment Strategies
- ✓Stocks: Historically beat inflation long-term
- ✓Real Estate: Property values typically rise with inflation
- ✓TIPS: Treasury Inflation-Protected Securities
- ✓I Bonds: Savings bonds indexed to inflation
- ✓Commodities: Gold, silver as inflation hedges
Personal Finance Tips
- →Negotiate salary increases annually
- →Lock in fixed-rate loans when rates are low
- →Build multiple income streams
- →Invest in yourself: skills appreciate over time
- →Review and adjust budget regularly
Frequently Asked Questions
What causes inflation?
Inflation is caused by several factors: increased money supply, rising production costs, strong consumer demand, expectations of future inflation, and supply chain disruptions. Central banks try to manage inflation through monetary policy, primarily by adjusting interest rates.
Is inflation always bad?
No, moderate inflation (2-3% annually) is actually healthy for the economy. It encourages spending and investment rather than hoarding cash, signals economic growth, and allows for easier debt repayment. Problems arise with high inflation (reduces purchasing power) or deflation (discourages spending).
How is inflation measured?
The most common measure is the Consumer Price Index (CPI), which tracks the average change in prices paid by urban consumers for a basket of goods and services. Other measures include the Producer Price Index (PPI), Personal Consumption Expenditures (PCE), and the GDP deflator.
How can I calculate my personal inflation rate?
Track your actual spending over time in categories like housing, food, transportation, and healthcare. Compare year-over-year changes to find your personal rate. This may differ from CPI as everyone's spending patterns are unique. Focus on your largest expense categories for the most accurate picture.
Link inflation forecasts with other tools
Export the numbers to ROI and savings calculators to set hedges, price increases, and automation reminders.