Buying power of $20 in 2009

This chart shows a calculation of buying power equivalence for $20 in 2009 (price index tracking began in 1635).

For example, if you started with $20, you would need to end with $23.96 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $20 is equivalent to $23.96 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 2009 dollars, the chart below shows how $20 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:

Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 2009 to 2020 (figures shown are purchasing power equivalents of $20):

• San Diego, California: 2.95% average rate, $20 → $26.76, cumulative change of 33.80%
• San Francisco, California: 2.78% average rate, $20 → $26.30, cumulative change of 31.50%
• Denver, Colorado: 2.50% average rate, $20 → $25.61, cumulative change of 28.03%
• Seattle, Washington: 2.08% average rate, $20 → $24.58, cumulative change of 22.92%
• Miami-Fort Lauderdale, Florida: 2.00% average rate, $20 → $24.38, cumulative change of 21.90%
• Phoenix, Arizona: 1.97% average rate, $20 → $24.31, cumulative change of 21.56%
• Atlanta, Georgia: 1.94% average rate, $20 → $24.23, cumulative change of 21.14%
• Minneapolis-St Paul, Minnesota: 1.87% average rate, $20 → $24.06, cumulative change of 20.31%
• Boston, Massachusetts: 1.86% average rate, $20 → $24.05, cumulative change of 20.27%
• Houston, Texas: 1.86% average rate, $20 → $24.04, cumulative change of 20.21%
• Tampa, Florida: 1.85% average rate, $20 → $24.03, cumulative change of 20.13%
• Dallas-Fort Worth, Texas: 1.71% average rate, $20 → $23.70, cumulative change of 18.49%
• New York: 1.62% average rate, $20 → $23.49, cumulative change of 17.46%
• St Louis, Missouri: 1.50% average rate, $20 → $23.22, cumulative change of 16.10%
• Detroit, Michigan: 1.47% average rate, $20 → $23.15, cumulative change of 15.73%
• Philadelphia, Pennsylvania: 1.41% average rate, $20 → $23.00, cumulative change of 14.98%
• Chicago, Illinois: 1.39% average rate, $20 → $22.97, cumulative change of 14.85%

San Diego, California experienced the highest rate of inflation during the 11 years between 2009 and 2020 (2.95%).

Chicago, Illinois experienced the lowest rate of inflation during the 11 years between 2009 and 2020 (1.39%).

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 £20.00 in 2009 would be equivalent to £27.00 in 2020, an absolute change of £7.00 and a cumulative change of 35.02%.

In Canada, CA$20.00 in 2009 would be equivalent to CA$23.76 in 2020, an absolute change of CA$3.76 and a cumulative change of 18.82%.

Compare these numbers to the US's overall absolute change of $3.96 and total percent change of 19.78%.

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 2009 and 2020.

Compare these values to the overall average of 1.65% per year:

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 2009. This table and charts use the earliest available data for each category.

How to Calculate Inflation Rate for $20 since 2009

This inflation calculator uses the following inflation rate formula:

Then plug in historical CPI values. The U.S. CPI was 214.537 in the year 2009 and 256.974 in 2020:

$20 in 2009 has the same "purchasing power" or "buying power" as $23.96 in 2020.

To get the total inflation rate for the 11 years between 2009 and 2020, we use the following formula:

Plugging in the values to this equation, we get:

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 1.84% per year between 2009 and 2020 (vs all-CPI inflation of 1.65%), for an inflation total of 20.06%.

When using the core inflation measurement, $20 in 2009 is equivalent in buying power to $24.01 in 2020, a difference of $4.01. Recall that for All Items, the converted amount is $23.96 with a difference of $3.96.

In 2009, core inflation was 1.70%.

Chained CPI is an alternative measurement that takes into account how consumers adjust spending for similar items. Chained inflation averaged 1.53% per year between 2009 and 2020, a total inflation amount of 20.06%.

According to the Chained CPI measurement, $20 in 2009 is equal in buying power to $23.27 in 2020, a difference of $3.27 (versus a converted amount of $23.96/change of $3.96 for All Items).

In 2009, chained inflation was -0.47%.

News headlines from 2009

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

• Barack Obama is inaugurated as the 44th President of the United States.
• An arrest warrant is issued for Omar Hassan al-Bashir, Sudanese President, by International Criminal Court, for war crimes and crimes against humanity. This is the first time a sitting head of state was indicted.
• Chrysler, an automotive company, files for bankruptcy.

Data Source & Citation

Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (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.

» Read more about inflation and investment.