Frequently Asked Questions
CPI stands for Consumer Price Index. It measures the average change in prices paid by consumers for a basket of goods and services.
Cumulative inflation is the total price growth between two years. It is based on the ratio of end-year CPI to start-year CPI.
Average annual inflation is the compounded yearly rate that would produce the same total CPI change over the selected period.
This calculator uses annual average CPI-U values from the U.S. Bureau of Labor Statistics series CUUR0000SA0.
Inflation changes with economic cycles, energy prices, monetary policy, and supply-demand shocks. CPI captures those year-to-year shifts.