$10,000,000 in 1989 → $19,767,741.94 in 2017

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U.S. Inflation Rate, $10,000,000 in 1989 to 2017

According to the Bureau of Labor Statistics consumer price index, prices in 2017 are 97.68% higher than average prices throughout 1989. The dollar experienced an average inflation rate of 2.46% per year during this period.

In other words, $10,000,000 in 1989 is equivalent in purchasing power to $19,767,741.94 in 2017, a difference of $9,767,741.94 over 28 years.

The 1989 inflation rate was 4.82%. The inflation rate in 2017 was 2.13%. The 2017 inflation rate is higher compared to the average inflation rate of 1.34% per year between 2017 and 2019.


Inflation from 1989 to 2017
Cumulative price change 97.68%
Average inflation rate 2.46%
Converted amount ($10,000,000 base) $19,767,741.94
Price difference ($10,000,000 base) $9,767,741.94
CPI in 1989 124.000
CPI in 2017 245.120
Inflation in 1989 4.82%
Inflation in 2017 2.13%


U.S. Inflation since 1913
Annual Rate, U.S. Bureau of Labor Statistics CPI

Buying power of $10,000,000 in 1989

This chart shows calculations of buying power equivalence over time for $10,000,000 in 1989 (price index tracking began in 1635).

According to the Bureau of Labor Statistics, each of these USD amounts below is equal in terms of what it could buy at the time:

Year USD Value Inflation Rate
1989 $10,000,000.00 4.82%
1990 $10,540,322.58 5.40%
1991 $10,983,870.97 4.21%
1992 $11,314,516.13 3.01%
1993 $11,653,225.81 2.99%
1994 $11,951,612.90 2.56%
1995 $12,290,322.58 2.83%
1996 $12,653,225.81 2.95%
1997 $12,943,548.39 2.29%
1998 $13,145,161.29 1.56%
1999 $13,435,483.87 2.21%
2000 $13,887,096.77 3.36%
2001 $14,282,258.06 2.85%
2002 $14,508,064.52 1.58%
2003 $14,838,709.68 2.28%
2004 $15,233,870.97 2.66%
2005 $15,750,000.00 3.39%
2006 $16,258,064.52 3.23%
2007 $16,721,129.03 2.85%
2008 $17,363,145.16 3.84%
2009 $17,301,370.97 -0.36%
2010 $17,585,161.29 1.64%
2011 $18,140,241.94 3.16%
2012 $18,515,645.16 2.07%
2013 $18,786,854.84 1.46%
2014 $19,091,612.90 1.62%
2015 $19,114,274.19 0.12%
2016 $19,355,403.23 1.26%
2017 $19,767,741.94 2.13%
2018 $20,250,551.08 2.44%
2019 $20,299,354.84 0.24%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1989 to 2017 (figures shown are purchasing power equivalents of $10,000,000):

  • San Diego, California: 3.37% average rate, $10,000,000 → $25,290,940.53, cumulative change of 152.91%
  • Seattle, Washington: 3.26% average rate, $10,000,000 → $24,565,238.76, cumulative change of 145.65%
  • Denver, Colorado: 2.86% average rate, $10,000,000 → $22,020,293.61, cumulative change of 120.20%
  • San Francisco, California: 2.81% average rate, $10,000,000 → $21,744,235.59, cumulative change of 117.44%
  • Miami-Fort Lauderdale, Florida: 2.71% average rate, $10,000,000 → $21,120,839.06, cumulative change of 111.21%
  • New York: 2.61% average rate, $10,000,000 → $20,567,083.68, cumulative change of 105.67%
  • Atlanta, Georgia: 2.60% average rate, $10,000,000 → $20,493,685.76, cumulative change of 104.94%
  • Tampa, Florida: 2.59% average rate, $10,000,000 → $20,472,108.21, cumulative change of 104.72%
  • Boston, Massachusetts: 2.57% average rate, $10,000,000 → $20,375,648.85, cumulative change of 103.76%
  • Minneapolis-St Paul, Minnesota: 2.43% average rate, $10,000,000 → $19,609,754.10, cumulative change of 96.10%
  • Houston, Texas: 2.39% average rate, $10,000,000 → $19,368,675.93, cumulative change of 93.69%
  • Philadelphia, Pennsylvania: 2.39% average rate, $10,000,000 → $19,355,001.30, cumulative change of 93.55%
  • Dallas-Fort Worth, Texas: 2.31% average rate, $10,000,000 → $18,928,731.94, cumulative change of 89.29%
  • Chicago, Illinois: 2.26% average rate, $10,000,000 → $18,691,398.85, cumulative change of 86.91%
  • Detroit, Michigan: 2.24% average rate, $10,000,000 → $18,570,739.70, cumulative change of 85.71%
  • St Louis, Missouri: 2.21% average rate, $10,000,000 → $18,444,562.99, cumulative change of 84.45%

San Diego, California experienced the highest rate of inflation during the 28 years between 1989 and 2017 (3.37%).

St Louis, Missouri experienced the lowest rate of inflation during the 28 years between 1989 and 2017 (2.21%).

Note that some locations showing 0% inflation may have not yet reported latest data.


Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £10,000,000.00 in 1989 would be equivalent to £23,650,165.02 in 2017, an absolute change of £13,650,165.02 and a cumulative change of 136.50%.

In Canada, CA$10,000,000.00 in 1989 would be equivalent to CA$17,135,348.23 in 2017, an absolute change of CA$7,135,348.23 and a cumulative change of 71.35%.

Compare these numbers to the US's overall absolute change of $9,767,741.94 and total percent change of 97.68%.


Inflation by Spending Category

CPI is the weighted combination of many categories of spending that are tracked by the government. This chart shows the average rate of inflation for select CPI categories between 1989 and 2017.

Compare these values to the overall average of 2.46% per year:

Category Avg Inflation (%) Total Inflation (%) $10,000,000 in 1989 → 2017
Food 2.51 99.93 19,992,890.53
Shelter 2.93 124.20 22,419,747.51
Energy 2.81 117.00 21,699,991.16
Apparel 0.21 5.93 10,592,605.09
New vehicles 0.75 23.32 12,331,571.59
Used cars and trucks 0.49 14.80 11,480,127.32
Transportation services 3.00 128.54 22,853,758.01
Medical care services 4.47 240.38 34,038,313.70
Medical care commodities 3.33 150.02 25,002,489.29

It's important to note that not all categories may be tracked since 1989. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $10,000,000, 1989 to 2017

This inflation calculator uses the following inflation rate formula:

CPI in 2017CPI in 1989
×
1989 USD value
=
2017 USD value

Then plug in historical CPI values. The U.S. CPI was 124 in the year 1989 and 245.12 in 2017:

245.12124
×
$10,000,000
=
$19,767,741.94

$10,000,000 in 1989 has the same "purchasing power" or "buying power" as $19,767,741.94 in 2017.

To get the total inflation rate for the 28 years between 1989 and 2017, we use the following formula:

CPI in 2017 - CPI in 1989CPI in 1989
×
100
=
Cumulative inflation rate (28 years)

Plugging in the values to this equation, we get:

245.12 - 124124
×
100
=
98%

Alternate Measurements of Inflation

The above data describe the CPI for all items. Also of note is the Core CPI, which measures inflation for all items except for the more volatile categories of food and energy. Core inflation averaged 2.42% per year between 1989 and 2017 (vs all-CPI inflation of 2.46%), for an inflation total of 95.52%.

When using the core inflation measurement, $10,000,000 in 1989 is equivalent in buying power to $19,551,505.93 in 2017, a difference of $9,551,505.93. Recall that for All Items, the converted amount is $19,767,741.94 with a difference of $9,767,741.94.

In 1989, core inflation was 4.51%.


Comparison to S&P 500 Index

The average inflation rate of 2.46% has a compounding effect between 1989 and 2017. As noted above, this yearly inflation rate compounds to produce an overall price difference of 97.68% over 28 years.

To help put this inflation into perspective, if we had invested $10,000,000 in the S&P 500 index in 1989, our investment would be nominally worth approximately $180,161,250.03 in 2017. This is a return on investment of 1,701.61%, with an absolute return of $170,161,250.03.

These numbers are not inflation adjusted, so they are considered nominal. In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account.

The compounding effect of inflation would account for 49.41% of returns ($84,080,983.21) during this period. This means the inflation-adjusted real return of our $10,000,000 investment is $86,080,266.83.

Investment in S&P 500 Index, 1989-2017
Original Amount Final Amount Change
Nominal $10,000,000 $180,161,250.03 1,701.61%
Real
Inflation Adjusted
$10,000,000 $86,080,266.83 860.80%


News headlines from 1989

Politics and news often influence economic performance. Here's what was happening at the time:

  • Chinese troops kill an estimated 1,000 students protesting at Tiananmen Square.
  • The first (partially) free elections take place in Poland, bringing democracy to Eastern Europe for the first time in 40 years. (Won by the Solidarity Party)
  • The demolition of the Berlin Wall begins.
  • Presidents George H. W. Bush and Mikhail Gorbachev, declare that the Cold War has ended.

Data Source & Citation

Raw data for these calculations comes from the Bureau of Labor Statistics' (CPI), established in 1913. Inflation data from 1665 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University.

You may use the following MLA citation for this page: “$10,000,000 in 1989 → 2017 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 15 Feb. 2019, https://www.officialdata.org/1989-dollars-in-2017?amount=10000000.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


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