CPI Inflation Calculator — United States 2026
Adjust US dollar amounts for CPI inflation across years and compare real purchasing power, wage drift, and the cash amount needed to keep pace.
See what your money is really worth over time.
United States Inflation Notes
US CPI comparisons are most useful when you want to see how far wages, savings, or everyday costs have drifted relative to inflation over time.
This version is tuned to US purchasing-power analysis, where CPI is often compared with wage growth, cash yields, and long-run household expenses.
US setup: this cpi inflation is tuned for dollar-denominated scenarios, American payroll and tax references, state-by-state cost differences, and the finance terms people see in lender, employer, or IRS-facing documents.
The page keeps US language in place where it is relevant, including IRS, federal withholding, FICA, 401(k), sales tax, miles, APR, down payment, paycheck, state tax, and USD totals.
Treat the answer as a United States estimate; before acting, compare it with provider disclosures, state rules, federal guidance, lender underwriting, payroll settings, or advice from a qualified professional.
Estimates only. 2026 IRS rates.
Select the question that matches your situation.
The CPI (Consumer Price Index) measures the average change in prices paid by US households over time. This calculator uses The BLS CPI data to adjust a dollar amount between any two years, showing the real purchasing power difference.
“Nominal” is the face value of money. “Real” is adjusted for inflation. A $60,000 salary in 2015 and a $60,000 salary in 2026 are nominally the same but very different in real terms — the 2026 salary buys about 29% less.
The BLS surveys prices for a “basket” of goods and services representing typical household spending: shelter, food, transportation, medical care, education, and more. The index is released monthly. The basket weights are updated annually to reflect changing spending patterns.
A small positive inflation rate (around 2%) is considered optimal: it encourages spending and investment (rather than hoarding), gives the Federal Reserve room to cut rates in a recession, and prevents the more damaging spiral of deflation.
US CPI has not been stable over the past 15 years. The COVID-era surge to 9.1% in mid-2022 significantly eroded real purchasing power for all Americans.
Average CPI of approximately 1.8%/yr during this decade — near the Federal Reserve’s 2% goal. The shelter component rose faster than CPI, but many other goods (electronics, clothing) fell in price.
COVID caused unusual CPI movements: childcare and education went to zero briefly, fuel fell sharply in 2020, then supply chain disruptions and stimulus began pushing prices up in 2021.
CPI reached 9.1% in June 2022 — the highest in four decades — driven by energy, food, and rents. The Federal Reserve raised the federal funds rate from near zero to a target range of 5.25–5.50% by mid-2023. CPI moderated to approximately 2.5–3% by 2025.
Any savings or investment earning less than the CPI rate is losing real value. Beating inflation is the minimum bar for any savings vehicle.
If inflation is 3.5%, you need to earn at least 3.5% on savings just to maintain purchasing power. After tax, a 5% savings account at a 24% marginal tax rate pays approximately 3.8% net — just ahead of 3.5% inflation.
US equities have returned approximately 9–10%/yr nominally over 30 years, or 6–7% real. Residential property: similar. Cash: approximately 2–3% real over most periods. Bonds: variable.
Your 401(k) or IRA investment returns are reported in nominal terms. A balanced fund returning 7%/yr at 3% inflation is earning approximately 4% in real terms. Check your fund’s reported real return, not just the nominal headline.
Real wage growth (wages growing faster than CPI) increases living standards. When wages grow slower than CPI, real wages fall — even if the nominal salary number goes up.
With CPI peaking at 9.1% in 2022 and average wage growth around 5%, real wages fell for most workers — the largest real-wage decline in decades. Workers on fixed salaries with 2–3% raises were hit hardest.
The federal minimum wage has been $7.25/hour since 2009 and is not indexed to inflation, so its real value has fallen sharply. Many states and cities set higher minimums — and a growing number (such as Washington, Colorado, and Arizona) now raise theirs each January in line with CPI to protect purchasing power.
Use this calculator in your next salary review: show your employer the CPI-adjusted equivalent of your 2019 or 2020 salary. Any raise below cumulative CPI is a real pay cut, regardless of the nominal percentage increase.
Methodology — CPI data, adjustment formula, and data sources
Formula
Inflation-adjusted amount = Original amount × (CPI in target year ÷ CPI in base year). For example, $1,000 in 2010 (CPI 218.056) adjusted to 2024 (CPI 313.689) = $1,000 × 313.689/218.056 = $1,439.
Data source
CPI data in this calculator is sourced from the U.S. Bureau of Labor Statistics (BLS) Consumer Price Index for All Urban Consumers (CPI-U), U.S. city average, all items. Data is updated to 2026. For the latest monthly release, visit BLS — Consumer Price Index.
Limitations
The all-items CPI is a national average. Your personal inflation rate depends on your specific spending mix. Renters and buyers in high-cost metros such as San Francisco, New York, or Miami often experienced far higher personal inflation in 2022–23 than the headline figure. The CPI does not capture every household’s cost of living equally.
CPI index values and annual rates 2010–2026
| Year | CPI index |
|---|---|
| 2010 | 218.1 |
| 2012 | 229.6 |
| 2014 | 236.7 |
| 2016 | 240.0 |
| 2018 | 251.1 |
| 2020 | 258.8 |
| 2021 | 271.0 (+4.7%) |
| 2022 | 292.7 (+8.0%) |
| 2023 | 304.7 (+4.1%) |
| 2024 | 313.7 (+2.9%) |
| 2025 | 321.9 (+2.6%) |
| 2026 | 334.0 (+3.5% yr/yr, Jun) |
Source: U.S. Bureau of Labor Statistics, CPI-U (U.S. city average, all items, 1982–84=100). Figures are annual averages; the 2026 entry shows the latest monthly reading (June 2026 = 334.0).
How inflation erodes savings and what return you need to maintain real value
The inflation break-even rate
To maintain the real value of savings, your after-tax return must exceed the inflation rate. At 3.5% inflation and a 24% marginal tax rate, you need a gross return of approximately 4.6% to break even in real terms. Most CDs in 2025–26 at 4.0–4.5% were approximately at this break-even level.
Rule of 72
Divide 72 by the inflation rate to estimate how many years it takes for prices to double. At 3.5% inflation, prices double approximately every 20.6 years. At 9% (near the June 2022 peak of 9.1%), prices would double about every 8 years.
How to use CPI data to calculate real wage changes and negotiate effectively
Calculating your real wage change
Enter your salary from a previous year as the “amount,” set the from year to when you last had a meaningful raise, and the to year to the current year. The adjusted amount shows what your salary needs to be today to maintain the same real purchasing power. If your current salary is below this figure, you have had a real pay cut.
Using CPI in salary negotiations
Present the CPI-adjusted figure to your employer alongside your current salary. Frame it as maintaining purchasing power rather than asking for a “raise.” Over 2022–2024, most US workers whose pay rose only 2–3% a year lost 5–10% of real purchasing power.
Frequently askedFrequently asked questions
What is the current US CPI inflation rate?
The June 2026 CPI release showed all-items inflation running at 3.5% over the prior 12 months. That is up from roughly 2.6–2.9% across 2024 and 2025, and well below the four-decade peak of 9.1% in June 2022. The Federal Reserve targets 2% inflation over the longer run. Check the latest monthly CPI release from the BLS for the current figure.
What does the CPI basket include?
The BLS CPI basket tracks prices for a representative mix of goods and services purchased by US households. The largest component is shelter (about a third of the index), followed by food (~13%), transportation (~16%, including gasoline and vehicles), medical care (~8%), and energy (~6%), with recreation, apparel, and education making up the rest. The BLS updates these weights annually.
How does the Federal Reserve use CPI?
The Federal Reserve sets the federal funds rate primarily to keep inflation near its 2% longer-run goal. When inflation runs hot, the Fed raises the rate to slow economic activity; when the economy weakens, it cuts rates to support spending. The 2022–23 hiking cycle — from near zero to a target range of 5.25–5.50% — was a direct response to CPI peaking at 9.1%.
Why doesn't CPI reflect my cost of living?
The CPI is a national average across all spending categories. Your personal inflation rate depends on your specific spending mix. If you spend a larger share on shelter (which rose faster than the overall index), or if you live in a high-cost metro such as San Francisco, New York, or Miami (where housing costs diverged from the national average), your personal inflation rate may be significantly higher than the headline CPI. The BLS also publishes regional and metro-area CPI series that can be more relevant to your situation.
Where these figures come from
Inflation and interest figures on this page are drawn from the BLS (Consumer Price Index), the Federal Reserve (the federal funds rate and published deposit averages), the FDIC (deposit insurance), and the CFPB (consumer guidance).
- Federal funds rate — Federal Reserve — Open Market Operations.
- Deposit interest-rate data — Federal Reserve — Selected Interest Rates (H.15).
- FDIC deposit insurance (up to $250k per depositor) — FDIC — Deposit insurance.
- Compound interest & savings strategy — CFPB — Consumer tools.
- Inflation & CPI — BLS — Consumer Price Index (latest release).
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.