# 1998 Inflation Calculator

Amount in 1998:

RESULT: \$1 in 1998 is worth \$1.82 today.

You might be interested in calculating the value of \$1 for the year 2003. Or calculate the value of \$1 for the year 2008

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# \$1 in 1998 is worth \$1.82 today.

## The value of \$1 from 1998 to 2022

\$1 in 1998 has the purchasing power of about \$1.82 today, a \$0.82 increase in 24 years. Between 1998 and today, the dollar experienced an average annual inflation rate of 2.52%, resulting in a cumulative price increase of 81.76%.

According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 1998.

In 1998, the inflation rate was 13.55%. Inflation is now 1.55% higher than it was last year. If this figure holds true, \$1 today will be worth \$2.55 next year in purchasing power.

## Inflation from 1998 to 2022

Summary Value
Cumulative price change (from 1998 to today) 81.76%
Average inflation rate (from 1998 to today) 2.52%
Converted amount \$1.82
Price Difference \$0.82
CPI in 1998 163
CPI in 2022 296.276
Inflation in 1998 13.55%
Inflation in 2022 1.55%
\$1 in 1998 \$1.82 in 2022

## Buying power of \$1 in 1998

If you had \$1 in your hand in 1998, its adjusted value for inflation today would be \$1.82. Put another way, you would need \$1.82 to beat the rising inflation. When \$1 becomes equivalent to \$1.82 over time, the "real value" of a single US dollar decreases. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation gradually erodes the value of a dollar. By calculating the value in 1998 dollars, it's evident how \$1 loses its worth over 24 years.

## Dollar inflation for \$1 from 1998 to 2022

The below tabular column shows the effect of inflation on \$1 in the year 1998 to the year 1998.

Year Dollar Value Inflation Rate
1998 1 13.55%
1999 1.02 2.21%
2000 1.06 3.36%
2001 1.09 2.85%
2002 1.1 1.58%
2003 1.13 2.28%
2004 1.16 2.66%
2005 1.2 3.39%
2006 1.24 3.23%
2007 1.27 2.85%
2008 1.32 3.84%
2009 1.32 -0.36%
2010 1.34 1.64%
2011 1.38 3.16%
2012 1.41 2.07%
2013 1.43 1.46%
2014 1.45 1.62%
2015 1.45 0.12%
2016 1.47 1.26%
2017 1.5 2.13%
2018 1.54 2.49%
2019 1.57 1.76%
2020 1.59 1.23%
2021 1.66 4.70%
2022 1.82 8.52%

## Conversion of 1998 dollars to today's price

Based on the 81.76% change in prices, the following 1998 amounts are shown in today's dollars:

Initial value Today value
\$1 dollar in 1998 \$1.82 dollars today
\$5 dollars in 1998 \$9.09 dollars today
\$10 dollars in 1998 \$18.18 dollars today
\$50 dollars in 1998 \$90.88 dollars today
\$100 dollars in 1998 \$181.76 dollars today
\$500 dollars in 1998 \$908.82 dollars today
\$1,000 dollars in 1998 \$1817.64 dollars today
\$5,000 dollars in 1998 \$9088.22 dollars today
\$10,000 dollars in 1998 \$18176.44 dollars today
\$50,000 dollars in 1998 \$90882.21 dollars today
\$100,000 dollars in 1998 \$181764.42 dollars today
\$500,000 dollars in 1998 \$908822.09 dollars today
\$1,000,000 dollars in 1998 \$1817644.17 dollars today

## How to calculate the inflated value of \$1 in 1998

To calculate the change in value between 1998 and today, we use the following inflation rate formula:

CPI Today / CPI in 1998 x USD Value in 1998 = Current USD Value

By plugging the values into the formula above, we get:

296.276/ 163 x \$1 = \$1.82

To buy the same product that you could buy for \$1 in 1998, you would need \$1.82 in 2022.

### To calculate the cumulative or total inflation rate in the past 24 years between 1998 and 2022, we use the following formula:

CPI in 2022 - CPI in 1998 / CPI in 1998 x 100 = Cumulative Inflation Rate

By inserting the values to this equation, we get:

( 296.276 - 163 / 163) x 100 = 81.76%

### Alternate method to calculate today's value of money after inflation - Using compound interest formula

Given that money changes over time due to inflation, which acts as compound interest, we can use the following formula:

FV = PV (1+i/100)^n

where,

• FV = Future value
• PV = Present value
• i: Average interest rate (inflation)
• n: Number of times the interest is compounded (i.e. # of years)

The future value in this case represents the amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much \$1 is worth today. We have 24 years between 2022 and 1998. The average inflation rate was 2.5210084571131%.

Plugging in the values into the formula, we get:

1 (1+ % 2.52/ 100 ) ^ 24 = \$1.82