U.S. inflation rate in 2016: 1.26%

Inflation Calculator


U.S. Inflation Rate, 2016-2018 ($1)

The consumer price index (CPI) in 2016 was 240.007. the Bureau of Labor Statistics uses this CPI value to track inflation on a monthly basis.

According to the Bureau of Labor Statistics consumer price index, the dollar experienced an average inflation rate of 1.98% per year. Prices in 2018 are 4.0% higher than prices in 2016.

In other words, $1 in the year 2016 is equivalent in purchasing power to $1.04 in 2018, a difference of $0.04 over 2 years.

The current inflation rate in 2018 is 1.72%1. If this number holds, $1 today will be equivalent to $1.02 next year.

Inflation from 2016 to 2018
Cumulative price change 4.00%
Average inflation rate 1.98%
Price difference ($1 base) $0.04
CPI in 2016 240.007
CPI in 2018 248.991

U.S. inflation from 1913 to 2017

Inflation rates for specific categories

Medical care · Gasoline (all types) · Wine at home · More

Inflation-adjusted measures

S&P 500 price · S&P 500 earnings · Shiller P/E

How to calculate the inflation rate for $1 since 2016

Start with the inflation rate formula:

CPI in 2018 / CPI in 2016 * 2016 USD value = 2018 USD value

Then plug in historical CPI values. The U.S. CPI was 240.007 in the year 2016 and 248.991 in 2018:

248.991 / 240.007 * $1 = $1.04

$1 in 2016 has the same "purchasing power" as $1.04 in 2018.

News headlines from 2016

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

  • The United Kingdom votes to leave the European Union in a referendum, prompting Prime Minister David Cameron to resign.
  • Donald Trump becomes the 45th President of the United States.
  • The World Health Organisation confirms the outbreak of the Zika virus.
  • Andrei Karlov, the Russian ambassador to Turkey, is assassinated.

Inflation Data Source

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: “Inflation Rate in 2016 | Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 17 Apr. 2018, http://www.in2013dollars.com/inflation-rate-in-2016.

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