According to the Bureau of Labor Statistics consumer price index, prices in 2018 are 54.05% higher than average prices throughout 1998. The dollar experienced an average inflation rate of 2.18% per year during this period.
In other words, $100 in 1998 is equivalent in purchasing power to $154.05 in 2018, a difference of $54.05 over 20 years.
The 1998 inflation rate was 1.56%. The inflation rate in 2018 was 2.44%. The 2018 inflation rate is higher compared to the average inflation rate of 0.66% per year between 2018 and 2019.
|Cumulative price change||54.05%|
|Average inflation rate||2.18%|
|Converted amount ($100 base)||$154.05|
|Price difference ($100 base)||$54.05|
|CPI in 1998||163.000|
|CPI in 2018||251.107|
|Inflation in 1998||1.56%|
|Inflation in 2018||2.44%|
This chart shows calculations of buying power equivalence over time for $100 in 1998 (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|
Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1998 to 2018 (figures shown are purchasing power equivalents of $100):
San Diego, California experienced the highest rate of inflation during the 20 years between 1998 and 2018 (4.25%).
Chicago, Illinois experienced the lowest rate of inflation during the 20 years between 1998 and 2018 (1.84%).
Note that some locations showing 0% inflation may have not yet reported latest data.
Inflation can also vary widely by country. For comparison, in the UK £100.00 in 1998 would be equivalent to £171.43 in 2018, an absolute change of £71.43 and a cumulative change of 71.43%.
In Canada, CA$100.00 in 1998 would be equivalent to CA$143.26 in 2018, an absolute change of CA$43.26 and a cumulative change of 43.26%.
Compare these numbers to the US's overall absolute change of $54.05 and total percent change of 54.05%.
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 1998 and 2018.
Compare these values to the overall average of 2.18% per year:
|Category||Avg Inflation (%)||Total Inflation (%)||$100 in 1998 → 2018|
|Used cars and trucks||-0.42||-8.11||91.89|
|Medical care services||3.77||109.81||209.81|
|Medical care commodities||2.75||71.95||171.95|
It's important to note that not all categories may be tracked since 1998. This table and visualization use the earliest available data for each category.
This inflation calculator uses the following inflation rate formula:
Then plug in historical CPI values. The U.S. CPI was 163 in the year 1998 and 251.10683333333 in 2018:
$100 in 1998 has the same "purchasing power" or "buying power" as $154.05 in 2018.
To get the total inflation rate for the 20 years between 1998 and 2018, we use the following formula:
Plugging in the values to this equation, we get:
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 2.00% per year between 1998 and 2018 (vs all-CPI inflation of 2.18%), for an inflation total of 48.55%.
When using the core inflation measurement, $100 in 1998 is equivalent in buying power to $148.55 in 2018, a difference of $48.55. Recall that for All Items, the converted amount is $154.05 with a difference of $54.05.
In 1998, core inflation was 2.29%.
The average inflation rate of 2.18% has a compounding effect between 1998 and 2018. As noted above, this yearly inflation rate compounds to produce an overall price difference of 54.05% over 20 years.
To help put this inflation into perspective, if we had invested $100 in the S&P 500 index in 1998, our investment would be nominally worth approximately $396.69 in 2018. This is a return on investment of 296.69%, with an absolute return of $296.69.
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 35.09% of returns ($104.10) during this period. This means the inflation-adjusted real return of our $100 investment is $192.59.
|Original Amount||Final Amount||Change|
Politics and news often influence economic performance. Here's what was happening at the time:
Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (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: “1998 dollars in 2018 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 21 Mar. 2019, https://www.officialdata.org/1998-dollars-in-2018.
Special thanks to QuickChart for providing downloadable chart images.
in2013dollars.com is a reference website maintained by the Official Data Foundation.