| Personal Finance Articles |
Calculator: How Does Inflation Affect Prices?
The consumer price index (CPI) measures the average price for a group of goods and services you and other consumers buy
routinely. Energy prices make up about a tenth of the CPI; food prices make up about one-fifth of the
index.
Play with this calculator (don't use commas when entering thousands) to see how inflation affects
purchases. Say your house cost $150,000 in 2000. Inflation alone would make it worth about $179,000
in 2007. If your latest appraisal shows your house worth more than that, it's appreciated beyond
inflation. If your latest assessment shows it worth less, then your investment has not kept pace with
inflation.
This calculator is solely for informational purposes and provides reasonably accurate results; the calculations are not intended to be relied upon for actual inflation
computations.
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Published June 6, 2000, Reviewed April 23, 2007
| Wednesday, November 25, 2009 |
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