Inflation is an important financial consideration, but it is usually slow-moving and invisible. Our economy is observing inflation now relative to one year ago, but is this inflation simply a transitory adjustment from pandemic to recovery or is this longer-lasting? While it is too soon to know, we view the impact of inflation by listing some fun facts. The lesson here is a dollar in 2020 will not be worth the same in 2030, 2050, etc.
Using Jill’s birth year, 1950:
| 1950 – 2020 | |
| Cumulative price change | 973.91% |
| Average inflation rate | 3.45% |
| Price difference (from $100) | $974.00 |
| Inflation in 1950 | 1.26% |
| Inflation in 2020 | 1.23% |
| $100 in 1950 equivalent to | $1074 in 2020 |
Using Brian’s birth year, 1970:
| 1970 – 2020 | |
| Cumulative price change | 567.04% |
| Average inflation rate | 3.87% |
| Price difference (from $100) | $567.00 |
| Inflation in 1970 | 5.72% |
| Inflation in 2020 | 1.23% |
| $100 in 1970 equivalent to | $667 in 2020 |
Add another 20 years:
| 1990 – 2020 | |
| Cumulative price change | 98.02% |
| Average inflation rate | 2.30% |
| Price difference (from $100) | $98.00 |
| Inflation in 1990 | 5.40% |
| Inflation in 2020 | 1.23% |
| $100 in 1990 equivalent to | $198 in 2020 |
Source: https://www.officialdata.org/us/inflation/