$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