Value Erosion
Calculate the invisible tax. Track how inflation degrades purchasing power and adjust your historical prices for today's economy.
Historical US average (1913-2023) is ~3.2%.
Equivalent Value in 2026
$2268.15
You need $2268.15 to maintain the same purchasing power 26 years later.
Purchasing Power Loss
55.9%
Hidden Tax
Inflation acts as a "hidden tax" on cash savers. Over this 26-year period, your $1000.00 has effectively lost 55.9% of its utility if sitting in a zero-interest account.
Economic Reality
Inflation is the steady increase in prices and fall in the purchasing value of money. Understanding its historical impact is crucial for retirement planning, salary negotiations, and long-term investment evaluation.
Real vs Nominal
Nominal value is the absolute price tag. Real value is adjusted for inflation, showing you the true change in purchasing power over time.
CPI Dynamics
The Consumer Price Index (CPI) tracks the weighted average of prices for a basket of consumer goods and services like transportation and food.
Portfolio Defense
To maintain your standard of living, your income and investments must outpace the annual inflation rate. Static cash is a melting ice cube in a high-inflation environment.
The Formula
Old Price × (New CPI / Old CPI)
Output
Adjusted Price
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