Inflation Calculator
Inflation affects day-to-day life purchases. See the buying power of the dollar over time based on a single item.
Disclaimer: The calculator uses an annual, non-seasonally adjusted inflation rate from FRED, Federal Reserve Bank of St. Louis
In 1985, you paid
$1,000.00
In 2024, you'd pay
$2,752.67
How does Titan’s inflation calculator work?
Titan’s inflation tax calculator gives you the ability to project how much you would pay today for an item you bought in the past, based on the current and historical rates of inflation.
Here’s how it works: Think of an item you bought or considered buying in the past. Enter the cost and the year you bought it in. For example, say you bought a couch in 2017 for $1500. Titan’s calculator would estimate how much that same couch might cost you today.
How does inflation impact consumers?
Inflation has several notable negative impacts for consumers. The first and perhaps most immediately recognizable impact is a higher cost of living, which occurs as the dollar’s value drops. If prices for goods and services rise faster than wages, consumers experience a loss of purchasing power. People on fixed incomes, like retirees, also see the value of their dollar-denominated nest eggs decline.
Inflation can impact consumers in a few positive ways, as well. Wages may increase as workers demand and receive bigger paychecks to keep up with the rising cost of living. People who own property and other tangible assets see the value of their holdings grow. And those with debt can pay down their loans with money that’s less valuable than the funds they borrowed.
What is the average inflation per sector?
According to the Bureau of Labor Statistics, over the 12 months ending in June 2022, the average inflation rate was 8.5% across all sectors. It was higher or lower in certain sectors, including:
Food: 10.9%
Energy: 32.9%
New vehicles: 10.4%
Medical services: 5.1%
Apparel: 5.1%
How does the government measure the annual inflation rate?
The government uses price indexes, which track prices for a constant set of goods and services (often hundreds of them) produced in an economy, to measure the purchasing power of the US dollar every year. Price indexes reflect an average consumer’s spending power in a given market. They are also weighted: Changes in the price of something people buy often affects the price index more than changes in the price of something they buy less often.
The CPI index, produced by the Bureau of Labor Statistics, is the most widely reported inflation gauge. It tracks the average change over time of about 80,000 goods and services for all urban consumers. Items are classified into more than 200 categories and eight major groups. Cost of living increases for Social Security recipients and some federal employees are linked to the CPI.
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