BLS Inflation Calculator
function calculateInflation() {
var cpiData = {
"1913": 9.9, "1914": 10.0, "1915": 10.1, "1916": 10.9, "1917": 12.8, "1918": 15.0, "1919": 17.3, "1920": 20.0,
"1921": 17.9, "1922": 16.8, "1923": 17.1, "1924": 17.1, "1925": 17.5, "1926": 17.7, "1927": 17.4, "1928": 17.1,
"1929": 17.1, "1930": 16.7, "1931": 15.2, "1932": 13.7, "1933": 13.0, "1934": 13.4, "1935": 13.7, "1936": 13.9,
"1937": 14.4, "1938": 14.1, "1939": 13.9, "1940": 14.0, "1941": 14.7, "1942": 16.3, "1943": 17.3, "1944": 17.6,
"1945": 18.0, "1946": 19.5, "1947": 22.3, "1948": 24.1, "1949": 23.8, "1950": 24.1, "1951": 26.0, "1952": 26.5,
"1953": 26.7, "1954": 26.9, "1955": 26.8, "1956": 27.2, "1957": 28.1, "1958": 28.9, "1959": 29.1, "1960": 29.6,
"1961": 29.9, "1962": 30.2, "1963": 30.6, "1964": 31.0, "1965": 31.5, "1966": 32.4, "1967": 33.4, "1968": 34.8,
"1969": 36.7, "1970": 38.8, "1971": 40.5, "1972": 41.8, "1973": 44.4, "1974": 49.3, "1975": 53.8, "1976": 56.9,
"1977": 60.6, "1978": 65.2, "1979": 72.6, "1980": 82.4, "1981": 90.9, "1982": 96.5, "1983": 99.6, "1984": 103.9,
"1985": 107.6, "1986": 109.6, "1987": 113.6, "1988": 118.3, "1989": 124.0, "1990": 130.7, "1991": 136.2, "1992": 140.3,
"1993": 144.5, "1994": 148.2, "1995": 152.4, "1996": 156.9, "1997": 160.5, "1998": 163.0, "1999": 166.6, "2000": 172.2,
"2001": 177.1, "2002": 179.9, "2003": 184.0, "2004": 188.9, "2005": 195.3, "2006": 201.6, "2007": 207.3, "2008": 215.3,
"2009": 214.5, "2010": 218.1, "2011": 224.9, "2012": 229.6, "2013": 233.0, "2014": 236.7, "2015": 237.0, "2016": 240.0,
"2017": 245.1, "2018": 251.1, "2019": 255.7, "2020": 258.8, "2021": 271.0, "2022": 292.7, "2023": 304.7
};
var originalAmount = parseFloat(document.getElementById("originalAmount").value);
var fromYear = document.getElementById("fromYear").value;
var toYear = document.getElementById("toYear").value;
var resultDiv = document.getElementById("inflationResult");
if (isNaN(originalAmount) || originalAmount < 0) {
resultDiv.innerHTML = "Please enter a valid positive amount.";
return;
}
var cpiFrom = cpiData[fromYear];
var cpiTo = cpiData[toYear];
if (!cpiFrom || !cpiTo) {
resultDiv.innerHTML = "CPI data not available for the selected year(s).";
return;
}
if (cpiFrom === 0) {
resultDiv.innerHTML = "Cannot calculate: CPI for the 'From Year' is zero.";
return;
}
var adjustedAmount = originalAmount * (cpiTo / cpiFrom);
resultDiv.innerHTML = "An amount of
$" + originalAmount.toFixed(2) + " in
" + fromYear + " would have the same purchasing power as approximately
$" + adjustedAmount.toFixed(2) + " in
" + toYear + ".";
}
// Set default values and calculate on load for initial display
window.onload = function() {
document.getElementById("originalAmount").value = "100";
document.getElementById("fromYear").value = "1970"; // Example default
document.getElementById("toYear").value = "2023"; // Example default
calculateInflation();
};
Understanding the BLS Inflation Calculator
The BLS Inflation Calculator helps you understand the changing purchasing power of money over time. It uses historical Consumer Price Index (CPI) data published by the U.S. Bureau of Labor Statistics (BLS) to adjust a past amount of money to its equivalent value in a more recent year.
What is the Consumer Price Index (CPI)?
The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It's a key indicator of inflation, reflecting how much prices for everyday items like food, housing, transportation, and medical care have increased or decreased.
How Does the Calculator Work?
The calculator uses a simple formula to adjust for inflation:
Adjusted Amount = Original Amount × (CPI in 'To Year' / CPI in 'From Year')
By comparing the CPI values between two different years, we can determine how much more (or less) money is needed in the 'To Year' to buy the same basket of goods and services that the 'Original Amount' could purchase in the 'From Year'.
Why is Inflation Adjustment Important?
- Historical Comparisons: It allows for meaningful comparisons of financial values across different time periods. For example, understanding what a salary from 1980 is worth today.
- Purchasing Power: It illustrates how inflation erodes the purchasing power of money. A dollar today buys less than a dollar did decades ago.
- Economic Analysis: Economists, policymakers, and businesses use inflation-adjusted data to make informed decisions and analyze real economic growth.
Examples:
Let's say you want to know what $100 in 1970 is worth today (2023):
- Original Amount: $100
- Year of Original Amount: 1970
- Year to Adjust To: 2023
- Using the calculator, you'd find that $100 in 1970 has the same purchasing power as approximately $785.31 in 2023 (based on CPI values: 1970 CPI = 38.8, 2023 CPI = 304.7).
Or, what if you earned $500 in 1995 and want to know its equivalent value in 2010?
- Original Amount: $500
- Year of Original Amount: 1995
- Year to Adjust To: 2010
- The calculator would show that $500 in 1995 is equivalent to about $716.50 in 2010 (based on CPI values: 1995 CPI = 152.4, 2010 CPI = 218.1).
Limitations:
While highly useful, the CPI is an average. It may not perfectly reflect the inflation experienced by every individual or for every specific good or service. Your personal inflation rate might differ based on your spending habits.