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The Impact Of Inflation Over Time

July 08, 2021

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/

 

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