How the inflation calculation works
The CPI tracks the price of a typical basket of goods and services bought by urban households. If the index doubles, it takes twice as many dollars to buy the same basket.
$100 from past years in 2025 dollars
| Year | Worth in 2025 |
|---|---|
| 1970 | $829.75 |
| 1980 | $390.71 |
| 1990 | $246.32 |
| 2000 | $186.96 |
| 2010 | $147.64 |
| 2020 | $124.39 |
Average yearly inflation by decade
| Decade | Average per year |
|---|---|
| 1950s | 2.0% |
| 1960s | 2.3% |
| 1970s | 7.1% |
| 1980s | 5.5% |
| 1990s | 3.0% |
| 2000s | 2.6% |
| 2010s | 1.8% |
The 1970s saw the fastest sustained price growth since World War II. Prices fell in the early 1930s during the Great Depression.
Frequently asked questions
Which CPI does this use?
The CPI for All Urban Consumers (CPI-U), U.S. city average, all items, as an annual average. It's the most widely quoted measure of U.S. inflation.
Why is 2026 marked as a partial year?
The full-year average isn't published until January of the next year, so 2026 uses the average of the months published so far (Jan–Jun). We update it each year.
Should my salary keep up with inflation?
If your pay grows more slowly than prices, your buying power falls. In 2025, average consumer prices rose about 2.6% from the year before.