Inflation Calculator — US CPI & Purchasing Power 2026

Free inflation calculator using Bureau of Labor Statistics (BLS) CPI data from 2000–2026. Instantly calculate purchasing power loss, inflation-adjusted dollar values, or the salary increase needed to keep pace with rising prices.

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Inflation Calculator

BLS CPI data 2000–2026 • Purchasing power & dollar value

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How the US Inflation Calculator Works — BLS CPI Data 2000–2026

This inflation calculator uses Bureau of Labor Statistics (BLS) CPI data to show exactly how the purchasing power of the US dollar has changed year by year. From 2000 to 2026, cumulative inflation is approximately 87% — meaning $1,000 in 2000 now requires about $1,870 to buy the same goods. The average annual US inflation rate since 2000 is roughly 2.5%, but it has been far from steady: 2021 saw 4.7%, 2022 peaked at 8.0% (the highest in 40 years), and by 2026 has moderated back to approximately 2.4%–2.8%, near the Federal Reserve's 2% long-run target. Use this CPI calculator to adjust any historical dollar amount to today's value, or to see exactly how much purchasing power you've lost.

The salary inflation calculator mode is the most practical tool for workers and retirees. If you earned $70,000 in 2020 and received no raise, inflation has eroded your real purchasing power to roughly $58,000 in 2025 dollars — same paycheck, less buying power. A 3% annual raise barely keeps pace with typical inflation; a 5% raise genuinely grows real income. Retirees face this challenge acutely: a fixed pension of $2,000/month in 2005 buys roughly $1,300 worth of equivalent goods in 2026. Social Security's annual cost-of-living adjustments (COLAs) are designed to offset this, but private pensions and fixed annuities usually do not adjust, making the purchasing power calculator essential for retirement income planning.

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BLS CPI Inflation History 2000–2026

BLS CPI data by decade: 2000s averaged 2.5% annually, 2010s averaged 1.7% (near-zero post-GFC), 2020–2023 averaged 5.1% due to pandemic supply disruptions. By 2026, CPI has returned to approximately 2.4%–2.8%, close to the Fed's 2% long-run target.

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Dollar Value Over Time — The Real Cost of Inflation

$100 in 2000 required about $187 by 2026 to buy the same goods — an 87% cumulative increase. $100 in 1990 required about $237 by 2025. This dollar value erosion is why retirement nest eggs must grow faster than inflation, not just match it.

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Cost of Living Calculator — Is Your Salary Keeping Up?

A $60,000 salary with 2% annual raises loses real purchasing power in any year inflation exceeds 2%. Use the salary inflation calculator mode to find exactly how much your wage must increase year-over-year to maintain the same standard of living.

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Inflation-Proof Your Savings — TIPS & I Bonds

Cash loses purchasing power every year inflation is positive. I Bonds and TIPS (Treasury Inflation-Protected Securities) adjust with CPI — the most direct inflation hedge. Broad stock index funds and real estate have also historically outpaced inflation over 10+ year periods.

Frequently Asked Questions

US CPI inflation in 2026: After the post-pandemic surge peaked at 9.1% in June 2022, inflation has moderated significantly. In May 2026, CPI year-over-year is approximately 2.4%-2.8% (near the Fed's 2% target). Core PCE (the Fed's preferred measure) is approximately 2.2%-2.5%. The Fed has maintained its target range as it balances inflation control with economic stability. This calculator uses actual BLS CPI data from 2000-2025 and the user-entered rate for future projections.
At 3% annual inflation: $100 today purchases what $74 purchased 10 years ago, what $55 purchased 20 years ago, and what $41 purchased 30 years ago. Conversely, your $100 today will only buy $74 worth in today's goods after 10 years. This is why retirement savings must be invested in assets that return more than inflation (stocks, real estate) rather than held in cash. The Rule of 70: divide 70 by inflation rate to find years to halve purchasing power. At 3%, purchasing power halves every 23 years.
Using BLS CPI data: CPI Jan 2000 = 168.8, CPI Dec 2025 = approximately 315.6. Cumulative inflation 2000-2025: approximately 87%. This means $1,000 in 2000 required approximately $1,870 in 2025 to have the same purchasing power. The average annual inflation rate over this 26-year period was approximately 2.5%. Notable spikes: 2021 (4.7%), 2022 (8.0%), 2023 (4.1%), then declining to near-2% by 2025-2026.
Inflation hedges ranked by effectiveness: (1) I-Bonds (Series I US Savings Bonds): rate adjusts every 6 months to CPI, principal protected, $10,000/year limit. (2) TIPS (Treasury Inflation-Protected Securities): principal adjusts with CPI, available in any amount. (3) Real estate: rents and values tend to rise with inflation. (4) Broad stock market index funds: corporate revenues grow with inflation over long periods. (5) Commodities (gold, oil): short-term hedge, volatile. Cash and bonds with fixed rates lose purchasing power in high inflation environments.

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✔ Reviewed by the True Value Calc editorial team🗓 Last updated June 2026📚 Sources: Peer-reviewed formulas & official U.S. government data