Inflation Calculator (US)

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Inflation Results
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What Is Inflation?

Inflation is when the prices of everyday goods and services go up, meaning your money buys less than it used to. The most common way to measure inflation in the US is through the Consumer Price Index (CPI), which tracks the average change in prices for a basket of goods like groceries, rent, gas, and more.

The Bureau of Labor Statistics (BLS) collects and publishes this data monthly and yearly. Your inflation calculator with CPI helps you see exactly how much your dollars from any year or month are worth today.

Why CPI Matters to You

The CPI matters because it shows how inflation affects real life—whether you’re buying groceries or saving for retirement. CPI includes different categories like food, housing, medical care, transportation, and more. It’s updated monthly to reflect the latest price changes.

  • Monthly CPI shows short-term price changes, useful for comparing recent months.
  • Annual CPI gives a broader look at long-term trends, perfect for comparing decades.

Your inflation calculator by month uses both to give you accurate results.

For example, according to June 2025 data, the US inflation rate stands at 2.7% year-over-year, with a 0.3% rise from the previous month. Using CPI data, you can see exactly how your purchasing power shifts over time.

Example: $100 in 2000 vs. 2025

Let’s take a practical example. If you had $100 in January 2000, it would have the same buying power as around $172 in June 2025. That’s because in 2000, the CPI was about 172.2, and in mid-2025 it’s roughly 351.6.

This means something that cost $100 back in 2000—like a weekend getaway or a shopping spree—now costs almost double. Inflation quietly erodes your money’s value, and the CPI helps track it.

Example: Monthly Comparison Breakdown

Your calculator also lets you compare by month. For example, between January 2024 and June 2025, prices have risen by roughly 5%. If you bought something for $500 in Jan 2024, it would cost about $525 in June 2025.

This monthly tracking is great for understanding how inflation affects short-term budgets, especially during periods of economic changes, like recent supply chain issues or policy shifts.

Frequently Asked Questions About Inflation

What causes inflation?

Inflation is mainly driven by demand-pull factors (when demand exceeds supply), cost-push factors (higher production costs), and built-in inflation (when businesses raise prices expecting higher future costs).

How is inflation measured in the US?

Inflation is primarily measured by the Consumer Price Index (CPI), calculated by the Bureau of Labor Statistics. Other measures include the Producer Price Index (PPI) and Personal Consumption Expenditures (PCE) index.

Why does inflation vary from month to month?

Monthly inflation can vary due to seasonal factors, supply chain disruptions, or changes in energy prices. Short-term trends might differ from long-term averages because of these temporary factors.

What is core inflation?

Core inflation excludes the more volatile categories of food and energy. It gives a clearer picture of underlying, longer-term inflation trends.

Can inflation ever be negative?

Yes! Negative inflation is called deflation, where prices fall. While lower prices might seem good, deflation can signal economic problems like reduced demand or a slowing economy.

How does inflation affect salaries?

Many salaries include cost-of-living adjustments (COLA) tied to CPI, especially in government jobs. This helps wages keep pace with inflation over time.

Why do central banks target 2% inflation?

Central banks, like the Federal Reserve, usually aim for around 2% inflation. This level is seen as low enough to protect purchasing power while preventing deflation.