Inflation Calculator

The inflation rate measures how much prices for goods and services rise over time. It is usually expressed as an annual percentage. In the US, the Consumer Price Index (CPI) tracks inflation by monitoring the cost of a fixed basket of items that typical households buy.

Understanding inflation helps you see what your money will actually buy in the future. A salary that stays the same loses real purchasing power each year as prices rise. Investors use inflation calculations to make sure their returns actually grow wealth rather than just keeping up with rising costs.