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# \$12,000,000 in 2006 → \$14,590,476.19 in 2017

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### U.S. Inflation Rate, \$12,000,000 in 2006 to 2017

According to the Bureau of Labor Statistics consumer price index, prices in 2017 are 21.59% higher than average prices since 2006. The U.S. dollar experienced an average inflation rate of 1.79% per year during this period, meaning the real value of a dollar decreased.

In other words, \$12,000,000 in 2006 is equivalent in purchasing power to about \$14,590,476.19 in 2017, a difference of \$2,590,476.19 over 11 years.

The 2006 inflation rate was 3.23%. The inflation rate in 2017 was 2.13%. The 2017 inflation rate is higher compared to the average inflation rate of 1.59% per year between 2017 and 2020.

 Cumulative price change 21.59% Average inflation rate 1.79% Converted amount (\$12,000,000 base) \$14,590,476.19 Price difference (\$12,000,000 base) \$2,590,476.19 CPI in 2006 201.600 CPI in 2017 245.120 Inflation in 2006 3.23% Inflation in 2017 2.13%

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

### Buying power of \$12,000,000 in 2006

This chart shows a calculation of buying power equivalence for \$12,000,000 in 2006 (price index tracking began in 1635).

For example, if you started with \$12,000,000, you would need to end with \$14,590,476.19 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$12,000,000 is equivalent to \$14,590,476.19 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 2006 dollars, the chart below shows how \$12,000,000 buys less over the past 11 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:

Year Dollar Value Inflation Rate
2006 \$12,000,000.00 3.23%
2007 \$12,341,785.71 2.85%
2008 \$12,815,654.76 3.84%
2009 \$12,770,059.52 -0.36%
2010 \$12,979,523.81 1.64%
2011 \$13,389,226.19 3.16%
2012 \$13,666,309.52 2.07%
2013 \$13,866,488.10 1.46%
2014 \$14,091,428.57 1.62%
2015 \$14,108,154.76 0.12%
2016 \$14,286,130.95 1.26%
2017 \$14,590,476.19 2.13%
2018 \$14,954,166.67 2.49%
2019 \$15,217,708.33 1.76%
2020 \$15,296,071.43 0.51%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 5 more rows

### Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 2006 to 2017 (figures shown are purchasing power equivalents of \$12,000,000):

• San Diego, California: 2.82% average rate, \$12,000,000 → \$16,301,946.51, cumulative change of 35.85%
• San Francisco, California: 2.52% average rate, \$12,000,000 → \$15,778,229.24, cumulative change of 31.49%
• Denver, Colorado: 2.34% average rate, \$12,000,000 → \$15,477,693.47, cumulative change of 28.98%
• Seattle, Washington: 2.17% average rate, \$12,000,000 → \$15,188,297.82, cumulative change of 26.57%
• Miami-Fort Lauderdale, Florida: 2.12% average rate, \$12,000,000 → \$15,108,246.56, cumulative change of 25.90%
• Tampa, Florida: 2.07% average rate, \$12,000,000 → \$15,031,575.34, cumulative change of 25.26%
• Houston, Texas: 1.84% average rate, \$12,000,000 → \$14,664,624.76, cumulative change of 22.21%
• Minneapolis-St Paul, Minnesota: 1.82% average rate, \$12,000,000 → \$14,632,354.74, cumulative change of 21.94%
• New York: 1.80% average rate, \$12,000,000 → \$14,597,357.39, cumulative change of 21.64%
• Atlanta, Georgia: 1.68% average rate, \$12,000,000 → \$14,419,424.00, cumulative change of 20.16%
• Boston, Massachusetts: 1.65% average rate, \$12,000,000 → \$14,369,905.79, cumulative change of 19.75%
• Phoenix, Arizona: 1.64% average rate, \$12,000,000 → \$14,348,771.30, cumulative change of 19.57%
• Dallas-Fort Worth, Texas: 1.59% average rate, \$12,000,000 → \$14,271,496.97, cumulative change of 18.93%
• St Louis, Missouri: 1.56% average rate, \$12,000,000 → \$14,228,245.85, cumulative change of 18.57%
• Chicago, Illinois: 1.50% average rate, \$12,000,000 → \$14,135,061.14, cumulative change of 17.79%
• Philadelphia, Pennsylvania: 1.46% average rate, \$12,000,000 → \$14,069,939.80, cumulative change of 17.25%
• Detroit, Michigan: 1.31% average rate, \$12,000,000 → \$13,843,900.20, cumulative change of 15.37%

San Diego, California experienced the highest rate of inflation during the 11 years between 2006 and 2017 (2.82%).

Detroit, Michigan experienced the lowest rate of inflation during the 11 years between 2006 and 2017 (1.31%).

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 £12,000,000.00 in 2006 would be equivalent to £16,505,182.34 in 2017, an absolute change of £4,505,182.34 and a cumulative change of 37.54%.

In Canada, CA\$12,000,000.00 in 2006 would be equivalent to CA\$14,303,473.49 in 2017, an absolute change of CA\$2,303,473.49 and a cumulative change of 19.20%.

Compare these numbers to the US's overall absolute change of \$2,590,476.19 and total percent change of 21.59%.

### 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 2006 and 2017.

Compare these values to the overall average of 1.79% per year:

Category Avg Inflation (%) Total Inflation (%) \$12,000,000 in 2006 → 2017
Food and beverages 2.25 27.69 15,322,298.13
Housing 1.95 23.66 14,839,489.72
Apparel 0.46 5.16 12,618,630.95
Transportation 0.99 11.45 13,373,661.11
Medical care 3.20 41.39 16,966,428.87
Recreation 0.60 6.84 12,820,742.30
Education and communication 1.43 16.92 14,030,107.07
Other goods and services 2.73 34.45 16,134,423.95

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 2006. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$12,000,000, 2006 to 2017

This inflation calculator uses the following inflation rate formula:

CPI in 2017CPI in 2006
×
2006 USD value
=
2017 USD value

Then plug in historical CPI values. The U.S. CPI was 201.6 in the year 2006 and 245.12 in 2017:

245.12201.6
×
\$12,000,000
=
\$14,590,476.19

\$12,000,000 in 2006 has the same "purchasing power" or "buying power" as \$14,590,476.19 in 2017.

To get the total inflation rate for the 11 years between 2006 and 2017, we use the following formula:

CPI in 2017 - CPI in 2006CPI in 2006
×
100
=
Cumulative inflation rate (11 years)

Plugging in the values to this equation, we get:

245.12 - 201.6201.6
×
100
=
22%

### 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 1.86% per year between 2006 and 2017 (vs all-CPI inflation of 1.79%), for an inflation total of 22.46%.

When using the core inflation measurement, \$12,000,000 in 2006 is equivalent in buying power to \$14,695,510.48 in 2017, a difference of \$2,695,510.48. Recall that for All Items, the converted amount is \$14,590,476.19 with a difference of \$2,590,476.19.

In 2006, core inflation was 2.50%.

Chained CPI is an alternative measurement that takes into account how consumers adjust spending for similar items. Chained inflation averaged 1.58% per year between 2006 and 2017, a total inflation amount of 22.46%.

According to the Chained CPI measurement, \$12,000,000 in 2006 is equal in buying power to \$14,261,014.53 in 2017, a difference of \$2,261,014.53 (versus a converted amount of \$14,590,476.19/change of \$2,590,476.19 for All Items).

In 2006, chained inflation was 2.90%.

### Comparison to S&P 500 Index

The average inflation rate of 1.79% has a compounding effect between 2006 and 2017. As noted above, this yearly inflation rate compounds to produce an overall price difference of 21.59% over 11 years.

To help put this inflation into perspective, if we had invested \$12,000,000 in the S&P 500 index in 2006, our investment would be nominally worth approximately \$33,496,425.12 in 2017. This is a return on investment of 179.14%, with an absolute return of \$21,496,425.12 on top of the original \$12,000,000.

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 17.75% of returns (\$5,947,145.97) during this period. This means the inflation-adjusted real return of our \$12,000,000 investment is \$15,549,279.15. You may also want to account for capital gains tax, which would take your real return down to around \$13,216,887 for most people.

Investment in S&P 500 Index, 2006-2017
Original Amount Final Amount Change
Nominal \$12,000,000 \$33,496,425.12 179.14%
Real
\$12,000,000 \$27,549,279.15 129.58%

Information displayed above may differ slightly from other S&P 500 calculators. Minor discrepancies can occur because we use the latest CPI data for inflation, annualized inflation numbers for previous years, and we compute S&P price and dividends from January of 2006 to latest available data for 2017 using average monthly close price.

For more details on the S&P 500 between 2006 and 2017, see the stock market returns calculator.

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

• Nepali security forces injure 243 pro-democracy protesters.
• North Kora is alleged to have tested its first nuclear device.

### 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: “\$12,000,000 in 2006 → 2017 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 24 Jan. 2020, https://www.officialdata.org/2006-dollars-in-2017?amount=12000000.