# \$1 in 1997 is worth \$0.93 in 1997

\$

## Value of \$1 from 2000 to 1997

According to the Bureau of Labor Statistics consumer price index, prices in 1997 are 6.79% lower than average prices since 2000. The U.S. dollar experienced an average inflation rate of 2.37% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 2000 is equivalent in purchasing power to about \$0.93 in 1997, a difference of \$-0.07 over 3 years.

The 1997 inflation rate was 2.29%. The inflation rate in 2000 was 3.36%. The 2000 inflation rate is higher compared to the average inflation rate of 2.01% per year between 2000 and 2020.

 Cumulative price change -6.79% Average inflation rate 2.37% Converted amount (\$1 base) \$0.93 Price difference (\$1 base) \$-0.07 CPI in 2000 172.200 CPI in 1997 160.500 Inflation in 1997 2.29% Inflation in 2000 3.36%

USD Inflation since 1913
Annual Rate, the Bureau of Labor Statistics CPI

## Buying power of \$1 in 1997

This chart shows a calculation of buying power equivalence for \$1 in 1997 (price index tracking began in 1635).

For example, if you started with \$1, you would need to end with \$0.93 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.93 over time, that means that the "real value" of a single U.S. dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1997 dollars, the chart below shows how \$1 is worth less over 3 years.

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:

Dollar inflation: 1997-2000
Year Dollar Value Inflation Rate
1997 \$1.00 2.29%
1998 \$1.02 1.56%
1999 \$1.04 2.21%
2000 \$1.07 3.36%
2001 \$1.10 2.85%
2002 \$1.12 1.58%
2003 \$1.15 2.28%
2004 \$1.18 2.66%
2005 \$1.22 3.39%
2006 \$1.26 3.23%
2007 \$1.29 2.85%
2008 \$1.34 3.84%
2009 \$1.34 -0.36%
2010 \$1.36 1.64%
2011 \$1.40 3.16%
2012 \$1.43 2.07%
2013 \$1.45 1.46%
2014 \$1.47 1.62%
2015 \$1.48 0.12%
2016 \$1.50 1.26%
2017 \$1.53 2.13%
2018 \$1.57 2.49%
2019 \$1.59 1.76%
2020 \$1.60 0.29%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1997 amounts in 2000 dollars, based on the -6.79% change in prices:

Conversion Table: Value of a dollar in 2000
Initial value Equivalent value
\$1 dollar in 1997 \$1.07 dollars in 2000
\$5 dollars in 1997 \$5.36 dollars in 2000
\$10 dollars in 1997 \$10.73 dollars in 2000
\$50 dollars in 1997 \$53.64 dollars in 2000
\$100 dollars in 1997 \$107.29 dollars in 2000
\$500 dollars in 1997 \$536.45 dollars in 2000
\$1,000 dollars in 1997 \$1,072.90 dollars in 2000
\$5,000 dollars in 1997 \$5,364.49 dollars in 2000
\$10,000 dollars in 1997 \$10,728.97 dollars in 2000
\$50,000 dollars in 1997 \$53,644.86 dollars in 2000
\$100,000 dollars in 1997 \$107,289.72 dollars in 2000
\$500,000 dollars in 1997 \$536,448.60 dollars in 2000
\$1,000,000 dollars in 1997 \$1,072,897.20 dollars in 2000

## Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 2000 to 1997 (figures shown are purchasing power equivalents of \$1):

Seattle, Washington experienced the highest rate of inflation during the 3 years between 1997 and 2000 (17.02%).

Miami-Fort Lauderdale, Florida experienced the lowest rate of inflation during the 3 years between 1997 and 2000 (1.92%).

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 £1.00 in 2000 would be equivalent to £0.92 in 1997, an absolute change of £-0.08 and a cumulative change of -7.52%.

In Canada, CA\$1.00 in 2000 would be equivalent to CA\$0.93 in 1997, an absolute change of CA\$-0.07 and a cumulative change of -6.51%.

Compare these numbers to the US's overall absolute change of \$-0.07 and total percent change of -6.79%.

## Inflation by Spending Category

CPI is the weighted combination of many categories of spending that are tracked by the government. Breaking down these categories helps explain the main drivers behind price changes. This chart shows the average rate of inflation for select CPI categories between 2000 and 1997.

Compare these values to the overall average of 2.37% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1997 → 2000
Food and beverages 2.19 6.73 1.07
Housing 2.65 8.15 1.08
Apparel -0.83 -2.47 0.98
Transportation 2.05 6.28 1.06
Medical care 3.59 11.15 1.11
Recreation 1.16 3.53 1.04
Education and communication 1.35 4.10 1.04
Other goods and services 6.44 20.59 1.21

The graph below compares inflation in categories of goods over time. Click on a category such as "Food" to toggle it on or off:

For all these visualizations, it's important to note that not all categories may have been tracked since 2000. This table and charts use the earliest available data for each category.

## How to Calculate Inflation Rate for \$1, 1997 to 2000

Our calculations use the following inflation rate formula to calculate the change in value between 1997 and 2000:

CPI in 1997 CPI in 2000
×
2000 USD value
=
1997 USD value

Then plug in historical CPI values. The U.S. CPI was 172.2 in the year 2000 and 160.5 in 1997:

160.5172.2
×
\$1
=
\$0.93

\$1 in 2000 has the same "purchasing power" or "buying power" as \$0.93 in 1997.

To get the total inflation rate for the 3 years between 1997 and 2000, we use the following formula:

CPI in 1997 - CPI in 2000CPI in 2000
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

160.5 - 172.2172.2
×
100
=
-7%

## 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 2.27% per year between 2000 and 1997 (vs all-CPI inflation of 2.37%), for an inflation total of 6.95%.

When using the core inflation measurement, \$1 in 2000 is equivalent in buying power to \$1.07 in 1997, a difference of \$0.07. Recall that for All Items, the converted amount is \$0.93 with a difference of \$-0.07.

In 2000, core inflation was 2.38%.

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

• Steve Ballmer becomes CEO of Microsoft after Bill Gates steps down.
• Dot-com bubble bursts after NASDAQ Composite stock market index peaks.
• George Bush becomes President of the U.S. in a disputed election that is eventually resolved by the Supreme Court.
• Gisborne, New Zealand becomes the first city to enter the new millennium.

## 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: “\$1 in 2000 → 1997 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 May. 2020, https://www.officialdata.org/2000-dollars-in-1997?amount=1.