# \$1 in 1996 → \$1.64 in 2020

## Inflation Calculator

\$

### U.S. Inflation Rate, \$1 from 1996 to 2020

According to the Bureau of Labor Statistics consumer price index, today's prices in 2020 are 64.42% higher than average prices since 1996. The U.S. dollar experienced an average inflation rate of 2.09% per year during this period, meaning the real value of a dollar decreased.

In other words, \$1 in 1996 is equivalent in purchasing power to about \$1.64 in 2020, a difference of \$0.64 over 24 years.

The 1996 inflation rate was 2.95%. The current inflation rate (2019 to 2020) is now 2.49%1. If this number holds, \$1 today will be equivalent in buying power to \$1.02 next year. The current inflation rate page gives more detail on the latest official inflation rates.

 Cumulative price change 64.42% Average inflation rate 2.09% Converted amount (\$1 base) \$1.64 Price difference (\$1 base) \$0.64 CPI in 1996 156.900 CPI in 2020 257.971 Inflation in 1996 2.95% Inflation in 2020 2.49%

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

### Buying power of \$1 in 1996

This chart shows a calculation of buying power equivalence for \$1 in 1996 (price index tracking began in 1635).

For example, if you started with \$1, you would need to end with \$1.64 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$1.64 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 1996 dollars, the chart below shows how \$1 buys less over the past 24 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
1996 \$1.00 2.95%
1997 \$1.02 2.29%
1998 \$1.04 1.56%
1999 \$1.06 2.21%
2000 \$1.10 3.36%
2001 \$1.13 2.85%
2002 \$1.15 1.58%
2003 \$1.17 2.28%
2004 \$1.20 2.66%
2005 \$1.24 3.39%
2006 \$1.28 3.23%
2007 \$1.32 2.85%
2008 \$1.37 3.84%
2009 \$1.37 -0.36%
2010 \$1.39 1.64%
2011 \$1.43 3.16%
2012 \$1.46 2.07%
2013 \$1.48 1.46%
2014 \$1.51 1.62%
2015 \$1.51 0.12%
2016 \$1.53 1.26%
2017 \$1.56 2.13%
2018 \$1.60 2.49%
2019 \$1.63 1.76%
2020 \$1.64 0.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 18 more rows

### Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1996 to 2020 (figures shown are purchasing power equivalents of \$1):

Seattle, Washington experienced the highest rate of inflation during the 24 years between 1996 and 2020 (4.24%).

Chicago, Illinois experienced the lowest rate of inflation during the 24 years between 1996 and 2020 (1.85%).

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 1996 would be equivalent to £1.89 in 2020, an absolute change of £0.89 and a cumulative change of 88.95%.

In Canada, CA\$1.00 in 1996 would be equivalent to CA\$1.52 in 2020, an absolute change of CA\$0.52 and a cumulative change of 52.06%.

Compare these numbers to the US's overall absolute change of \$0.64 and total percent change of 64.42%.

### 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 1996 and 2020.

Compare these values to the overall average of 2.09% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1996 → 2020
Food and beverages 2.22 69.40 1.69
Housing 2.40 76.57 1.77
Apparel -0.36 -8.24 0.92
Transportation 1.58 45.62 1.46
Medical care 3.42 124.11 2.24
Recreation 0.94 25.20 1.25
Education and communication 1.58 45.76 1.46
Other goods and services 3.20 112.78 2.13

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 1996. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1 since 1996

This inflation calculator uses the following inflation rate formula:

CPI in 2020CPI in 1996
×
1996 USD value
=
2020 USD value

Then plug in historical CPI values. The U.S. CPI was 156.9 in the year 1996 and 257.971 in 2020:

257.971156.9
×
\$1
=
\$1.64

\$1 in 1996 has the same "purchasing power" or "buying power" as \$1.64 in 2020.

To get the total inflation rate for the 24 years between 1996 and 2020, we use the following formula:

CPI in 2020 - CPI in 1996CPI in 1996
×
100
=
Cumulative inflation rate (24 years)

Plugging in the values to this equation, we get:

257.971 - 156.9156.9
×
100
=
64%

### 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 2.00% per year between 1996 and 2020 (vs all-CPI inflation of 2.09%), for an inflation total of 60.67%.

When using the core inflation measurement, \$1 in 1996 is equivalent in buying power to \$1.61 in 2020, a difference of \$0.61. Recall that for All Items, the converted amount is \$1.64 with a difference of \$0.64.

In 1996, core inflation was 2.71%.

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

• The Motorola StarTAC, the first clamshell flip phone, goes on sale worldwide.
• Osama bin Laden issues "A declaration of war against the Americans occupying the land of the two holy places".
• Bill Clinton signs the Welfare Reform Bill into law.

### 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 1996 → 2020 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 20 Feb. 2020, https://www.officialdata.org/us/inflation/1996?amount=1.