Calculate inflation effects on purchasing power and real value over time.
| Decade | Average Rate | Highest Year | Lowest Year | Notable Events |
|---|---|---|---|---|
| 2020s | 4.2% | 2022 (8.0%) | 2020 (1.2%) | COVID-19 pandemic, supply chain issues |
| 2010s | 1.8% | 2011 (3.1%) | 2015 (0.1%) | Post-financial crisis recovery |
| 2000s | 2.6% | 2008 (3.8%) | 2002 (1.6%) | Dot-com bubble, housing crisis |
| 1990s | 3.0% | 1990 (5.4%) | 1998 (1.6%) | Economic expansion period |
| 1980s | 5.5% | 1980 (13.5%) | 1986 (1.9%) | Volcker shock, recession |
| 1970s | 7.4% | 1979 (11.3%) | 1972 (3.2%) | Oil crises, stagflation |
| Country | 2023 Rate | 10-Year Average | Target Rate | Status |
|---|---|---|---|---|
| United States | 3.2% | 2.1% | 2.0% | Above target |
| European Union | 5.4% | 1.8% | 2.0% | Well above target |
| United Kingdom | 6.7% | 2.3% | 2.0% | Well above target |
| Japan | 3.3% | 0.8% | 2.0% | Above target |
| Canada | 3.9% | 2.0% | 2.0% | Above target |
| Australia | 5.4% | 2.2% | 2-3% | Above target |
| Item | 1980 Price | 2000 Price | 2024 Price | Total Increase |
|---|---|---|---|---|
| Gallon of Gas | $1.19 | $1.51 | $3.50 | 194% |
| Loaf of Bread | $0.50 | $0.99 | $2.50 | 400% |
| Movie Ticket | $2.69 | $5.39 | $12.00 | 346% |
| New Car (Average) | $7,200 | $21,850 | $48,000 | 567% |
| House (Median) | $68,700 | $169,000 | $420,000 | 511% |
| College Tuition | $3,500 | $8,400 | $38,000 | 986% |
| Strategy | Effectiveness | Risk Level | Liquidity | Examples |
|---|---|---|---|---|
| Real Estate | High | Medium | Low | Rental properties, REITs |
| Stocks | High | High | High | Dividend stocks, growth companies |
| Commodities | High | High | Medium | Gold, oil, agricultural products |
| TIPS | Medium | Low | High | Treasury Inflation-Protected Securities |
| I Bonds | Medium | Low | Low | Series I Savings Bonds |
| Floating Rate Loans | Medium | Medium | Low | Variable rate mortgages |