🇺🇸 USA Inflation Calculator
Calculate dollar purchasing power changes using official US Bureau of Labor Statistics CPI data from 1960-2024
Historical Periods
🏦 Federal Reserve System
The Fed targets ~2% annual inflation for price stability and full employment. Since 1913, the Federal Reserve has managed monetary policy through interest rates, with the dual mandate of stable prices and maximum employment established in 1977.
📊 The Great Inflation (1970s-80s)
From 1970-1982, the US experienced persistent high inflation, peaking at 13.5% in 1980. Fed Chairman Paul Volcker's aggressive interest rate hikes (up to 20%) finally tamed inflation by the mid-1980s.
🕊️ The Great Moderation (1990s-2000s)
From 1990-2007, inflation remained remarkably stable around 2-3%, a period economists call "The Great Moderation" characterized by steady economic growth and low volatility.
💥 Modern Inflation Cycles
- 1980: Peak 13.5% (Volcker shock)
- 2009: Deflation -0.4% (Great Recession)
- 2015: Near-zero 0.1% (energy collapse)
- 2022: Post-COVID surge 8.0%
- 2024: Normalizing at 2.9%
🏛️ Major US Economic Eras
🎛️ Fed Policy Tools
Federal Funds Rate
Primary tool: Interest rate for overnight bank lending
Quantitative Easing
Bond purchases to increase money supply (2008-2014, 2020-2022)
Forward Guidance
Communication about future policy intentions
Reserve Requirements
Minimum reserves banks must hold