# \$1 in 2005 is worth \$0.94 in 2003

\$

## Value of \$1 from 2005 to 2003

According to the Bureau of Labor Statistics consumer price index, prices in 2003 are 5.79% lower than average prices since 2005. The U.S. dollar experienced an average inflation rate of 3.02% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 2005 is equivalent in purchasing power to about \$0.94 in 2003, a difference of \$-0.06 over 2 years.

The 2003 inflation rate was 2.28%. The inflation rate in 2005 was 3.39%. The 2005 inflation rate is higher compared to the average inflation rate of 1.94% per year between 2005 and 2020.

 Cumulative price change -5.79% Average inflation rate 3.02% Converted amount (\$1 base) \$0.94 Price difference (\$1 base) \$-0.06 CPI in 2005 195.300 CPI in 2003 184.000 Inflation in 2003 2.28% Inflation in 2005 3.39%

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

## Buying power of \$1 in 2003

This chart shows a calculation of buying power equivalence for \$1 in 2003 (price index tracking began in 1635).

For example, if you started with \$1, you would need to end with \$0.94 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.94 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 2003 dollars, the chart below shows how \$1 is worth less over 2 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: 2003-2005
Year Dollar Value Inflation Rate
2003 \$1.00 2.28%
2004 \$1.03 2.66%
2005 \$1.06 3.39%
2006 \$1.10 3.23%
2007 \$1.13 2.85%
2008 \$1.17 3.84%
2009 \$1.17 -0.36%
2010 \$1.19 1.64%
2011 \$1.22 3.16%
2012 \$1.25 2.07%
2013 \$1.27 1.46%
2014 \$1.29 1.62%
2015 \$1.29 0.12%
2016 \$1.30 1.26%
2017 \$1.33 2.13%
2018 \$1.37 2.49%
2019 \$1.39 1.76%
2020 \$1.42 1.85%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2003 amounts in 2005 dollars, based on the -5.79% change in prices:

Conversion Table: Value of a dollar in 2005
Initial value Equivalent value
\$1 dollar in 2003 \$1.06 dollars in 2005
\$5 dollars in 2003 \$5.31 dollars in 2005
\$10 dollars in 2003 \$10.61 dollars in 2005
\$50 dollars in 2003 \$53.07 dollars in 2005
\$100 dollars in 2003 \$106.14 dollars in 2005
\$500 dollars in 2003 \$530.71 dollars in 2005
\$1,000 dollars in 2003 \$1,061.41 dollars in 2005
\$5,000 dollars in 2003 \$5,307.07 dollars in 2005
\$10,000 dollars in 2003 \$10,614.13 dollars in 2005
\$50,000 dollars in 2003 \$53,070.65 dollars in 2005
\$100,000 dollars in 2003 \$106,141.30 dollars in 2005
\$500,000 dollars in 2003 \$530,706.52 dollars in 2005
\$1,000,000 dollars in 2003 \$1,061,413.04 dollars in 2005

## Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 2005 to 2003 (figures shown are purchasing power equivalents of \$1):

San Diego, California experienced the highest rate of inflation during the 2 years between 2003 and 2005 (4.55%).

Denver, Colorado experienced the lowest rate of inflation during the 2 years between 2003 and 2005 (1.09%).

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 £0.94 in 2003, an absolute change of £-0.06 and a cumulative change of -5.56%.

In Canada, CA\$1.00 in 2005 would be equivalent to CA\$0.96 in 2003, an absolute change of CA\$-0.04 and a cumulative change of -4.09%.

Compare these numbers to the US's overall absolute change of \$-0.06 and total percent change of -5.79%.

## 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 2005 and 2003.

Compare these values to the overall average of 3.02% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 2003 → 2005
Food and beverages 2.90 5.89 1.06
Housing 2.91 5.91 1.06
Apparel -0.56 -1.11 0.99
Transportation 5.06 10.37 1.10
Medical care 4.31 8.81 1.09
Recreation 0.86 1.73 1.02
Education and communication 1.76 3.55 1.04
Other goods and services 2.41 4.89 1.05

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 2005. This table and charts use the earliest available data for each category.

## How to Calculate Inflation Rate for \$1, 2003 to 2005

Our calculations use the following inflation rate formula to calculate the change in value between 2003 and 2005:

CPI in 2003 CPI in 2005
×
2005 USD value
=
2003 USD value

Then plug in historical CPI values. The U.S. CPI was 195.3 in the year 2005 and 184 in 2003:

184195.3
×
\$1
=
\$0.94

\$1 in 2005 has the same "purchasing power" or "buying power" as \$0.94 in 2003.

To get the total inflation rate for the 2 years between 2003 and 2005, we use the following formula:

CPI in 2003 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

184 - 195.3195.3
×
100
=
-6%

## 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 1.97% per year between 2005 and 2003 (vs all-CPI inflation of 3.02%), for an inflation total of 3.97%.

When using the core inflation measurement, \$1 in 2005 is equivalent in buying power to \$1.04 in 2003, a difference of \$0.04. Recall that for All Items, the converted amount is \$0.94 with a difference of \$-0.06.

In 2005, core inflation was 1.45%.

Chained CPI is an alternative measurement that takes into account how consumers adjust spending for similar items. Chained inflation averaged 2.71% per year between 2005 and 2003, a total inflation amount of 3.97%.

According to the Chained CPI measurement, \$1 in 2005 is equal in buying power to \$1.06 in 2003, a difference of \$0.06 (versus a converted amount of \$0.94/change of \$-0.06 for All Items).

In 2005, chained inflation was 2.04%.

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 → 2003 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Nov. 2020, https://www.officialdata.org/us/inflation/2005?amount=1&endYear=2003.

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.