Finance
Inflation Calculator: Rising Prices Impact
See how inflation affects purchasing power over time.
See how purchasing power changes as prices rise.
Measurement
CPI tracks a basket of goods. Rate = (CPI now - CPI then) / CPI then × 100.
Adjusting Values
Future = Present × (1 + rate)^years.
Why It Matters
- Retirement: Need more for same lifestyle
- Salary: Raises should match inflation
- Investments: Real return = nominal - inflation
- Savings: 0% accounts lose value
US Average
About 3% long-term. Recent high: 9.1% in 2022.
Frequently Asked Questions
Current rate?
Check BLS website for latest CPI data.
Effect on savings?
3% inflation + 1% return = -2% real return.
What beats inflation?
Stocks (7-10%), real estate, TIPS.