$1 in 2005 → $0.97 in 2004

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$1 in 2005 → $0.97 in 2004

U.S. Inflation Rate, $1 in 2005 to 2004

According to the Bureau of Labor Statistics consumer price index, prices in 2004 are 3.28% lower than average prices throughout 2005. The dollar experienced an average inflation rate of 3.39% per year during this period, meaning the real value of a dollar decreased.

In other words, $1 in 2005 is equivalent in purchasing power to about $0.97 in 2004.

The 2004 inflation rate was 2.66%. The inflation rate in 2005 was 3.39%. The 2005 inflation rate is higher compared to the average inflation rate of 1.99% per year between 2005 and 2019.


Inflation from 2005 to 2004
Average inflation rate 3.39%
Converted amount ($1 base) $0.97
Price difference ($1 base) $-0.03
CPI in 2005 195.300
CPI in 2004 188.900
Inflation in 2004 2.66%
Inflation in 2005 3.39%

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

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 2005 to 2004 (figures shown are purchasing power equivalents of $1):

Miami-Fort Lauderdale, Florida experienced the highest rate of inflation during the 1 years between 2004 and 2005 (4.70%).

San Francisco, California experienced the lowest rate of inflation during the 1 years between 2004 and 2005 (1.97%).

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 2005 would be equivalent to £0.97 in 2004, an absolute change of £-0.03 and a cumulative change of -2.75%.

In Canada, CA$1.00 in 2005 would be equivalent to CA$0.98 in 2004, an absolute change of CA$-0.02 and a cumulative change of -2.04%.

Compare these numbers to the US's overall absolute change of $-0.03 and total percent change of -3.28%.


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 2005 and 2004.

Compare these values to the overall average of 3.39% per year:

Category Avg Inflation (%) Total Inflation (%) $1 in 2004 → 2005
Food and beverages 2.43 2.43 1.02
Housing 3.26 3.26 1.03
Apparel -0.74 -0.74 0.99
Transportation 6.63 6.63 1.07
Medical care 4.22 4.22 1.04
Recreation 0.67 0.67 1.01
Education and communication 1.90 1.90 1.02
Other goods and services 2.82 2.82 1.03

For all these visualizations, it's important to note that not all categories may have been tracked since 2005. This table and charts use the earliest available data for each category.



How to Calculate Inflation Rate for $1, 2004 to 2005

This inflation calculator uses the following inflation rate formula:

CPI in 2004CPI in 2005
×
2005 USD value
=
2004 USD value

Then plug in historical CPI values. The U.S. CPI was 195.3 in the year 2005 and 188.9 in 2004:

188.9195.3
×
$1
=
$0.97

$1 in 2005 has the same "purchasing power" or "buying power" as $0.97 in 2004.

To get the total inflation rate for the 1 years between 2004 and 2005, we use the following formula:

CPI in 2004 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

188.9 - 195.3195.3
×
100
=
-3%

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 2.17% per year between 2005 and 2004 (vs all-CPI inflation of 3.39%), for an inflation total of 2.17%.

When using the core inflation measurement, $1 in 2005 is equivalent in buying power to $1.02 in 2004, a difference of $0.02. Recall that for All Items, the converted amount is $0.97 with a difference of $-0.03.

In 2005, core inflation was 1.76%.

Chained CPI is an alternative measurement that takes into account how consumers adjust spending for similar items. Chained inflation averaged 2.92% per year between 2005 and 2004, a total inflation amount of 2.17%.

According to the Chained CPI measurement, $1 in 2005 is equal in buying power to $1.03 in 2004, a difference of $0.03 (versus a converted amount of $0.97/change of $-0.03 for All Items).

In 2005, chained inflation was 2.51%.


News headlines from 2004

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

  • Egyptian President Hosni Mubarak asks Parliament to amend Article 76 and orders constitutional changes in order to allow multi-candidate presidential elections.
  • Syria's 29-year-long military domination of Lebanon ends, after it withdraws the last of its 14,000 troops under international pressure.
  • A coordinated bomb attack hits London's public transport system, during the morning rush hour, killing 52 and injuring a further 700 people.
  • Angela Merkel becomes first female Chancellor of Germany.

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 2005 → 2004 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 6 Dec. 2019, https://www.officialdata.org/2005-dollars-in-2004?amount=1.

Special thanks to QuickChart for providing downloadable chart images.

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


About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

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Inflation from 2005 to 2004
Average inflation rate 3.39%
Converted amount ($1 base) $0.97
Price difference ($1 base) $-0.03
CPI in 2005 195.300
CPI in 2004 188.900
Inflation in 2004 2.66%
Inflation in 2005 3.39%