What is inflation?
Inflation is the rise in the general level of prices. If inflation is 3%, a basket of groceries, energy, rent and other spending that cost $100 last year costs about $103 now. Each dollar buys a little less, so your money loses purchasing power.
In the United States the Bureau of Labor Statistics (BLS) measures inflation with the Consumer Price Index for All Urban Consumers (CPI-U). Every month it tracks the prices of thousands of goods and services and weights them by how much households spend on each. The index is set to 100 for the 1982–84 average; an annual average of 321.94 in 2025 means the same basket cost more than three times as much. For the Netherlands the calculator uses the CPI of Statistics Netherlands (CBS), with 2015 = 100.
Two ways to calculate
1. With CPI data (looking back). Enter an amount, a start year and an end year. The calculator multiplies the amount by the ratio of the annual average index values:
value in end year = amount × CPI(end year) ÷ CPI(start year)
That shows, for example, what your first salary would be in today's money, or whether your rent has risen faster than prices in general.
2. With your own rate (looking ahead). Future inflation is unknown, so you choose a rate. A common assumption is 2%, the long-run target of both the Federal Reserve and the European Central Bank. The calculator compounds the rate:
future price = amount × (1 + inflation)^years
Examples
$100 from 2000. The US CPI averaged 172.2 in 2000 and 321.94 in 2025. So $100 × 321.94 ÷ 172.2 = $186.96. Something that cost $100 in 2000 cost about $187 in 2025: an 87.0% increase, or 2.53% a year on average.
€1,000 from 2020 (Netherlands). Because Dutch inflation hit 10.0% in 2022, €1,000 from 2020 equals €1,251.60 in 2025 prices.
Looking ahead: 3% a year for 10 years. Something that costs $100 today will cost about $134.39 in 10 years. Put the other way, $100 kept in cash will then buy only what $74.41 buys today.
US inflation by year
| Year | CPI-U (annual average) | Inflation |
|---|---|---|
| 2019 | 255.66 | 1.8% |
| 2020 | 258.81 | 1.2% |
| 2021 | 270.97 | 4.7% |
| 2022 | 292.66 | 8.0% |
| 2023 | 304.70 | 4.1% |
| 2024 | 313.69 | 2.9% |
| 2025 | 321.94 | 2.6% |
The 2021–2022 spike followed pandemic supply shocks, strong demand and the jump in energy prices after Russia's invasion of Ukraine. The US series in this calculator starts in 1990 and the Dutch series in 1996.
What inflation means for you
- Savings: if your savings rate is below inflation, the buying power of your savings shrinks even as the balance grows. Use the savings calculator to see what your money earns.
- Pay: a 3% raise in a year with 3.5% inflation is a small real pay cut. Comparing raises with CPI tells you whether you are keeping up.
- Debt: a fixed-rate loan gets lighter in real terms, because the fixed payment is worth less each year.
- Contracts: rents, pensions such as Social Security (through its cost-of-living adjustment) and many contracts are indexed to the CPI.
Limitations
The CPI is an average across households. Your personal inflation rate can be higher or lower depending on where you live, whether you rent or own, and how much you drive. The figures used here are annual averages, so a year only appears once all twelve months are published. For 2025 the BLS series has one month missing because of the federal shutdown; the average uses the eleven published months.
Frequently asked questions
How do I calculate inflation between two years?
Divide the end-year CPI by the start-year CPI, subtract 1 and multiply by 100. From 2020 (258.81) to 2025 (321.94) that is (321.94 ÷ 258.81 − 1) × 100 = 24.4%.
What was US inflation in 2025?
Based on the annual average CPI-U, consumer prices rose about 2.6% in 2025 compared with 2024.
Why do central banks target 2% inflation?
A low, predictable rate leaves room to adjust wages and prices and keeps a buffer against deflation, which can stall an economy. Both the Fed and the ECB aim for 2% over the medium term.
What is the difference between CPI and core CPI?
Core CPI leaves out food and energy, whose prices swing a lot. It shows the underlying trend; the headline CPI used here reflects what households actually pay.
Which data does the calculator use?
CPI-U annual averages from the US Bureau of Labor Statistics and the CPI from Statistics Netherlands (CBS). The latest year included is shown in the source box on this page.
Can I calculate future inflation?
Only with an assumption. Choose "own rate", enter a yearly percentage such as 2% or 3% and the number of years.
Last reviewed: 2026-10-06. Results are estimates for information only.