![]() ![]() Information displayed above may differ slightly from other S&P 500 calculators. You may also want to account for capital gains tax, which would take your real return down to around $20 for most people. This means the inflation-adjusted real return of our $1 investment is $23.44. The compounding effect of inflation would account for 89.35% of returns ($204.95) during this period. In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account. These numbers are not inflation adjusted, so they are considered nominal. This is a return on investment of 22,838.75%, with an absolute return of $228.39 on top of the original $1. To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 1966, our investment would be nominally worth approximately $229.39 in 2023. As noted above, this yearly inflation rate compounds to produce an overall price difference of 838.66% over 57 years. The average inflation rate of 4.01% has a compounding effect between 19. Recall that the converted amount is $9.39 when all items including food and energy are measured. When using the core inflation measurement, $1 in 1966 is equivalent in buying power to $9.10 in 2023, a difference of $8.10. Core InflationĪlso of note is the Core CPI, which uses the standard CPI but omits the more volatile categories of food and energy.Ĭore inflation averaged 3.95% per year between 19 (vs all-CPI inflation of 4.01%), for an inflation total of 810.26%. The PCE measured -234.51% inflation compared to standard CPI.įor more information on the difference between PCE and CPI, see this analysis provided by the Bureau of Labor Statistics. Compare this to the standard CPI measurement, which equates $1 with $9.39. ![]() This means that the PCE Index equates $1 in 1966 with $7.04 in 2023, a difference of $6.04. The total PCE inflation between these dates was 604.15%. The PCE Price Index changed by 3.48% per year on average between 19. It measures the change in prices of goods and services purchased by consumers. Federal Reserve's preferred measure of inflation, compiled by the Bureau of Economic Analysis. Personal Consumption Expenditures (PCE) Inflation Below are a few examples of alternative measurements. The Consumer Price Index, used above, is the most common standard used globally.Īlternative measurements are sometimes used based on context and economic/political circumstances. Published rates of inflation will vary depending on methodology. There are multiple ways to measure inflation. In Canada, CA$1.00 in 1966 would be equivalent to CA$8.67 in 2023, an absolute change of CA$7.67 and a cumulative change of 766.93%. For comparison, in the UK £1.00 in 1966 would be equivalent to £23.83 in 2023, an absolute change of £22.83 and a cumulative change of 2,283.45%. Inflation can also vary widely by country. Note that some locations showing 0% inflation may have not yet reported latest data. San Francisco, California experienced the highest rate of inflation during the 57 years between 19 (4.24%).ĭetroit, Michigan experienced the lowest rate of inflation during the 57 years between 19 (3.83%). Detroit, Michigan: 3.83% average rate, $1 → $8.51, cumulative change of 751.14%.Chicago, Illinois: 3.84% average rate, $1 → $8.59, cumulative change of 758.68%.Philadelphia, Pennsylvania: 3.91% average rate, $1 → $8.89, cumulative change of 788.63%.Dallas-Fort Worth, Texas: 3.97% average rate, $1 → $9.19, cumulative change of 819.00%.Atlanta, Georgia: 4.00% average rate, $1 → $9.33, cumulative change of 833.49%.Boston, Massachusetts: 4.07% average rate, $1 → $9.71, cumulative change of 870.51%.Seattle, Washington: 4.22% average rate, $1 → $10.53, cumulative change of 953.19%.San Francisco, California: 4.24% average rate, $1 → $10.66, cumulative change of 965.87%.Here's how some cities fared in 1966 to 2023 (figures shown are purchasing power equivalents of $1): Inflation can vary widely by city, even within the United States. See inflation summary for latest 12-month trailing value. ![]()
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