CPI Calculator
Calculate Consumer Price Index adjustments
Frequently Asked Questions
What is CPI and how is it used?
The Consumer Price Index (CPI) measures the average change in prices paid by consumers for goods and services over time. It is the primary indicator of inflation. A CPI increase of 3% means prices rose 3% on average compared to the base period.
How does the CPI Calculator adjust for inflation?
The calculator converts past values to present-day equivalents using the formula: Adjusted Value = Original Value × (Current CPI / Past CPI). For example, $100 in 2000 with CPI 172.2 equals about $180 in 2024 with CPI 310.
What is the difference between CPI and inflation rate?
CPI is an index number (e.g., 310.0). The inflation rate is the percentage change in CPI over a period: Inflation Rate = ((CPI_new - CPI_old) / CPI_old) × 100. If CPI went from 300 to 310, inflation is 3.33%.
Why does CPI matter for salary negotiations?
If CPI rose 4% but your salary only increased 2%, your real purchasing power decreased by approximately 2%. Use the calculator to show how much your salary should increase to maintain the same buying power as previous years.
What items are included in the CPI basket?
The CPI basket includes housing (33%), transportation (17%), food (14%), medical care (9%), education (7%), recreation (6%), apparel (3%), and other goods and services. Weights are updated periodically to reflect changing consumer spending patterns.