# 2012 Inflation Calculator

Amount in 2012:

RESULT: \$1 in 2012 is worth \$1.29 today.

You might be interested in calculating the value of \$1 for the year 2017.

# \$1 in 2012 is worth \$1.29 today.

## The value of \$1 from 2012 to 2022

\$1 in 2012 has the purchasing power of about \$1.29 today, a \$0.29 increase in 10 years. Between 2012 and today, the dollar experienced an average annual inflation rate of 2.58%, resulting in a cumulative price increase of 29.04%.

According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2012.

In 2012, the inflation rate was 2.07%. Inflation is now 8.52% higher than it was last year. If this figure holds true, \$1 today will be worth \$9.52 next year in purchasing power.

## Inflation from 2012 to 2022

Summary Value
Cumulative price change (from 2012 to today) 29.04%
Average inflation rate (from 2012 to today) 2.58%
Converted amount \$1.29
Price Difference \$0.29
CPI in 2012 229.6
CPI in 2022 296.276
Inflation in 2012 2.07%
Inflation in 2022 8.52%
\$1 in 2012 \$1.29 in 2022

## Buying power of \$1 in 2012

If you had \$1 in your hand in 2012, its adjusted value for inflation today would be \$1.29. Put another way, you would need \$1.29 to beat the rising inflation. When \$1 becomes equivalent to \$1.29 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 2012 dollars, it's evident how \$1 loses its worth over 10 years.

## Dollar inflation for \$1 from 2012 to 2022

The below tabular column shows the effect of inflation on \$1 in the year 2012 to the year 2012.

Year Dollar Value Inflation Rate
2012 1 2.07%
2013 1.01 1.46%
2014 1.03 1.62%
2015 1.03 0.12%
2016 1.05 1.26%
2017 1.07 2.13%
2018 1.09 2.49%
2019 1.11 1.76%
2020 1.13 1.23%
2021 1.18 4.70%
2022 1.29 8.52%

## Conversion of 2012 dollars to today's price

Based on the 29.04% change in prices, the following 2012 amounts are shown in today's dollars:

Initial value Today value
\$1 dollar in 2012 \$1.29 dollars today
\$5 dollars in 2012 \$6.45 dollars today
\$10 dollars in 2012 \$12.9 dollars today
\$50 dollars in 2012 \$64.52 dollars today
\$100 dollars in 2012 \$129.04 dollars today
\$500 dollars in 2012 \$645.2 dollars today
\$1,000 dollars in 2012 \$1290.4 dollars today
\$5,000 dollars in 2012 \$6452 dollars today
\$10,000 dollars in 2012 \$12904.01 dollars today
\$50,000 dollars in 2012 \$64520.03 dollars today
\$100,000 dollars in 2012 \$129040.07 dollars today
\$500,000 dollars in 2012 \$645200.35 dollars today
\$1,000,000 dollars in 2012 \$1290400.7 dollars today

## How to calculate the inflated value of \$1 in 2012

To calculate the change in value between 2012 and today, we use the following inflation rate formula:

CPI Today / CPI in 2012 x USD Value in 2012 = Current USD Value

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

296.276/ 229.6 x \$1 = \$1.29

To buy the same product that you could buy for \$1 in 2012, you would need \$1.29 in 2022.

### To calculate the cumulative or total inflation rate in the past 10 years between 2012 and 2022, we use the following formula:

CPI in 2022 - CPI in 2012 / CPI in 2012 x 100 = Cumulative Inflation Rate

By inserting the values to this equation, we get:

( 296.276 - 229.6 / 229.6) x 100 = 29.04%

### 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 10 years between 2022 and 2012. The average inflation rate was 2.582306312942%.

Plugging in the values into the formula, we get:

1 (1+ % 2.58/ 100 ) ^ 10 = \$1.29