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 2023, you'd pay
$2,672.50
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.
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.
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%
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.
Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.
Here are a few other common ones. If we haven’t answered your question, feel free to reach out to us at support@titan.com. We’re here for you.
It's time to focus on the future of your wealth.
© Copyright 2023 Titan Global Capital Management USA LLC. All Rights Reserved.
Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan. Cryptocurrency trading is provided by Bakkt Crypto Solutions LLC ("Bakkt Crypto"). Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution services are provided by Bakkt Crypto (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto and Titan. Please ensure that you fully understand the risks involved before trading: bakkt.com/disclosures.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.