$3,495 in 1989 is worth $8,653.68 today

Value of $3,495 from 1989 to 2023

$3,495 in 1989 is equivalent in purchasing power to about $8,653.68 today, an increase of $5,158.68 over 34 years. The dollar had an average inflation rate of 2.70% per year between 1989 and today, producing a cumulative price increase of 147.60%.

This means that today's prices are 2.48 times as high as average prices since 1989, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 40.387% of what it could buy back then.

The inflation rate in 1989 was 4.82%. The current inflation rate compared to last year is now 3.67%. If this number holds, $3,495 today will be equivalent in buying power to $3,623.10 next year. The current inflation rate page gives more detail on the latest inflation rates.

Inflation from 1989 to 2023
Cumulative price change147.60%
Average inflation rate2.70%
Converted amount
$3,495 base
Price difference
$3,495 base
CPI in 1989124.000
CPI in 2023307.026
Inflation in 19894.82%
Inflation in 20233.67%
$3,495 in 1989$8,653.68 in 2023

USD inflation since 1989
Annual Rate, the Bureau of Labor Statistics CPI

Buying power of $3,495 in 1989

This chart shows a calculation of buying power equivalence for $3,495 in 1989 (price index tracking began in 1635).

For example, if you started with $3,495, you would need to end with $8,653.68 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $3,495 is equivalent to $8,653.68 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 1989 dollars, the chart below shows how $3,495 is worth less over 34 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: 1989-2023
YearDollar ValueInflation Rate
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 28 more rows

This conversion table shows various other 1989 amounts in today's dollars, based on the 147.60% change in prices:

Conversion: 1989 dollars today
Initial valueEquivalent value
$1 dollar in 1989$2.48 dollars today
$5 dollars in 1989$12.38 dollars today
$10 dollars in 1989$24.76 dollars today
$50 dollars in 1989$123.80 dollars today
$100 dollars in 1989$247.60 dollars today
$500 dollars in 1989$1,238.01 dollars today
$1,000 dollars in 1989$2,476.02 dollars today
$5,000 dollars in 1989$12,380.08 dollars today
$10,000 dollars in 1989$24,760.16 dollars today
$50,000 dollars in 1989$123,800.81 dollars today
$100,000 dollars in 1989$247,601.61 dollars today
$500,000 dollars in 1989$1,238,008.06 dollars today
$1,000,000 dollars in 1989$2,476,016.13 dollars today

Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1989 to 2023 (figures shown are purchasing power equivalents of $3,495):

San Diego, California experienced the highest rate of inflation during the 34 years between 1989 and 2023 (3.49%).

St Louis, Missouri experienced the lowest rate of inflation during the 34 years between 1989 and 2023 (2.40%).

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 £3,495.00 in 1989 would be equivalent to £11,125.18 in 2023, an absolute change of £7,630.18 and a cumulative change of 218.32%.

In Canada, CA$3,495.00 in 1989 would be equivalent to CA$7,582.67 in 2023, an absolute change of CA$4,087.67 and a cumulative change of 116.96%.

Compare these numbers to the US's overall absolute change of $5,158.68 and total percent change of 147.60%.

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.

Between 1989 and 2023:

This chart shows the average rate of inflation for select CPI categories between 1989 and 2023.

Compare these values to the overall average of 2.70% per year:

CategoryAvg Inflation (%)Total Inflation (%)$3,495 in 1989 → 2023
Food and beverages2.80155.698,936.40
Medical care3.90267.2912,836.81
Education and communication1.7882.376,373.92
Other goods and services3.85260.7712,609.07

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 1989. This table and charts use the earliest available data for each category.

How to calculate inflation rate for $3,495 since 1989

Our calculations use the following inflation rate formula to calculate the change in value between 1989 and today:

CPI today CPI in 1989
1989 USD value
Today's value

Then plug in historical CPI values. The U.S. CPI was 124 in the year 1989 and 307.026 in 2023:


$3,495 in 1989 has the same "purchasing power" or "buying power" as $8,653.68 in 2023.

To get the total inflation rate for the 34 years between 1989 and 2023, we use the following formula:

CPI in 2023 - CPI in 1989CPI in 1989
Cumulative inflation rate (34 years)

Plugging in the values to this equation, we get:

307.026 - 124124

Alternate Measurements of Inflation

There are multiple ways to measure inflation. Published rates of inflation will vary depending on methodology. The Consumer Price Index, used above, is the most common standard used globally.

Alternative measurements are sometimes used based on context and economic/political circumstances. Below are a few examples of alternative measurements.

Personal Consumption Expenditures (PCE) Inflation

The PCE Price Index is the U.S. Federal Reserve's preferred measure of inflation, compiled by the Bureau of Economic Analysis. It measures the change in prices of goods and services purchased by consumers.

The PCE Price Index changed by 2.19% per year on average between 1989 and 2023. The total PCE inflation between these dates was 109.15%. In 1989, PCE inflation was 4.37%.

This means that the PCE Index equates $3,495 in 1989 with $7,309.79 in 2023, a difference of $3,814.79. Compare this to the standard CPI measurement, which equates $3,495 with $8,653.68. The PCE measured -38.45% inflation compared to standard CPI.

For more information on the difference between PCE and CPI, see this analysis provided by the Bureau of Labor Statistics.

Core Inflation

Also of note is the Core CPI, which uses the standard CPI but omits the more volatile categories of food and energy.

Core inflation averaged 2.58% per year between 1989 and 2023 (vs all-CPI inflation of 2.70%), for an inflation total of 137.92%. In 1989, core inflation was 4.51%.

When using the core inflation measurement, $3,495 in 1989 is equivalent in buying power to $8,315.18 in 2023, a difference of $4,820.18. Recall that the converted amount is $8,653.68 when all items including food and energy are measured.

Comparison to S&P 500 Index

The average inflation rate of 2.70% has a compounding effect between 1989 and 2023. As noted above, this yearly inflation rate compounds to produce an overall price difference of 147.60% over 34 years.

To help put this inflation into perspective, if we had invested $3,495 in the S&P 500 index in 1989, our investment would be nominally worth approximately $110,002.32 in 2023. This is a return on investment of 3,047.42%, with an absolute return of $106,507.32 on top of the original $3,495.

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 59.61% of returns ($65,575.18) during this period. This means the inflation-adjusted real return of our $3,495 investment is $40,932.14. You may also want to account for capital gains tax, which would take your real return down to around $34,792 for most people.

Investment in S&P 500 Index, 1989-2023
Original AmountFinal AmountChange
Inflation Adjusted

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 1989 to latest available data for 2023 using average monthly close price.

For more details on the S&P 500 between 1989 and 2023, see the stock market returns calculator.

Data source & citation

Raw data for these calculations comes from the Bureau of Labor Statistics' (CPI), established in 1913. Price index data from 1774 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University and from the American Antiquarian Society. Price index data from 1634 to 1773 is from the American Antiquarian Society, using British pound equivalents.

You may use the following MLA citation for this page: “$3,495 in 1989 → 2023 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 21 Sep. 2023, https://www.officialdata.org/us/inflation/1989?amount=3495.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

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

Ian Webster

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 1989 to 2023
Cumulative price change147.60%
Average inflation rate2.70%
Converted amount
$3,495 base
Price difference
$3,495 base
CPI in 1989124.000
CPI in 2023307.026
Inflation in 19894.82%
Inflation in 20233.67%
$3,495 in 1989$8,653.68 in 2023