Inflation and Consumer Prices Calculator
Inflation and Consumer Prices Calculator Definitions
- Starting year
- The initial year to start your price adjustments for inflation.
- Ending year
- The final year to price adjust for inflation. The final value is always calculated for the end of the year you select.
- The hypothetical price of a good or service in the start year. We adjust this amount annually for the Consumer Price Index (CPI) as reported by the Federal Reserve of Minneapolis (www.minneapolisfed.org).
- Total inflation
- The total cumulative impact of inflation for the time-frame you have selected. To calculate total inflation, we use the Consumer Price Index (CPI) as reported by the Federal Reserve of Minneapolis (www.minneapolisfed.org).
The underlying data supplies an annual CPI rate and a base amount which represents the relative purchasing power for that year. For example, in 1980 the base amount was 82.4 compared to 224.9 in 2011. In this example, $224.90 in 2011 would have the same purchasing power as $82.40 in 1980. The calculations use the base amounts to calculate the difference between any two years. There are small data discrepancies and loss of precision through rounding in the underlying data supplied by the Federal Reserve. These discrepancies can cause differences between the annual change in base amounts and the stated CPI rate for any given year.