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Inflation: Consumer Price Index
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The inflation rates computed here measure the annual rate of change of the cost of a bundle of goods and services a representative household bought in a base year. In principle, this bundle is the same every year although periodically the bundle is adjusted. The Consumer Price Index (CPI) is used to compute the inflation rate for the United States, and the corresponding, Retail Price Index (RPI) for United Kingdom.
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The definition of "inflation" cannot be separated from that of the "price level." Economists measure the price level by computing a weighted average of consumer prices or so-called "producer" prices. The value of the average is arbitrarily set equal to one (or one hundred) in a base year, and the index in any other year is expressed relative to the base year. The value of the consumer price index in 1999 was 167, relative to a value of 100 in 1982 (the base year). That is, prices in 1999 were 67 percent higher on average than in 1982.
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The following table provides all the Inflation data from 1914 to the Present. For the current inflation rate data just since the year 2000, see Inflation page. The Inflation rate is calculated from the Consumer Price Index (CPI-U) which is compiled by the Bureau of Labor Statistics and is based upon a 1982 Base of 100. To view the actual Consumer Price Index data that this inflation data is calculated from, go to the Historical CPI table.
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The Higher Education Price Index (HEPI) is similar in concept to the Consumer Price Index (CPI), but measures inflation based on a basket of goods and services used by colleges and universities. It is calculated for each academic year (July 1 to June 30) by the Commonfund Institute. The CPI figures in the following table are June to June ratios.
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The increase is tied to inflation as measured by the government’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The increase is based on the average change in prices for a market basket of goods and service from the third quarter of 2006 to the third quarter of 2007. – Tom Philpott
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This is an inflation calculator for adjusting cost of living from one year to another using the Consumer Price Index (CPI) inflation index. This inflation calculator is based on the average inflation index during the calendar year. This inflation calculator will compute inflation rates for any years between 1913 and 2003.
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Consumer Price Index