$1 in 2019 is worth $1.16 today.
The value of $1 from 2019 to 2022
$1 in 2019 has the purchasing power of about $1.16 today, a $0.16 increase in 3 years. Between 2019 and today, the dollar experienced an average annual inflation rate of 5.04%, resulting in a cumulative price increase of 15.89%.
According to the Bureau of Labor Statistics consumer price index, today's prices are several times higher than the average price since 2019.
In 2019, the inflation rate was 1.81%. 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 2019 to 2022
| Summary | Value |
|---|---|
| Cumulative price change (from 2019 to today) | 15.89% |
| Average inflation rate (from 2019 to today) | 5.04% |
| Converted amount | $1.16 |
| Price Difference | $0.16 |
| CPI in 2019 | 255.658 |
| CPI in 2022 | 296.276 |
| Inflation in 2019 | 1.81% |
| Inflation in 2022 | 8.52% |
| $1 in 2019 | $1.16 in 2022 |
Buying power of $1 in 2019
If you had $1 in your hand in 2019, its adjusted value for inflation today would be $1.16. Put another way, you would need $1.16 to beat the rising inflation. When $1 becomes equivalent to $1.16 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 2019 dollars, it's evident how $1 loses its worth over 3 years.
Dollar inflation for $1 from 2019 to 2022
The below tabular column shows the effect of inflation on $1 in the year 2019 to the year 2019.
| Year | Dollar Value | Inflation Rate |
|---|---|---|
| 2019 | 1 | 1.81% |
| 2020 | 1.01 | 1.23% |
| 2021 | 1.06 | 4.70% |
| 2022 | 1.16 | 8.52% |
Conversion of 2019 dollars to today's price
Based on the 15.89% change in prices, the following 2019 amounts are shown in today's dollars:
| Initial value | Today value |
|---|---|
| $1 dollar in 2019 | $1.16 dollars today |
| $5 dollars in 2019 | $5.79 dollars today |
| $10 dollars in 2019 | $11.59 dollars today |
| $50 dollars in 2019 | $57.94 dollars today |
| $100 dollars in 2019 | $115.89 dollars today |
| $500 dollars in 2019 | $579.44 dollars today |
| $1,000 dollars in 2019 | $1158.88 dollars today |
| $5,000 dollars in 2019 | $5794.38 dollars today |
| $10,000 dollars in 2019 | $11588.76 dollars today |
| $50,000 dollars in 2019 | $57943.82 dollars today |
| $100,000 dollars in 2019 | $115887.63 dollars today |
| $500,000 dollars in 2019 | $579438.16 dollars today |
| $1,000,000 dollars in 2019 | $1158876.31 dollars today |
How to calculate the inflated value of $1 in 2019
To calculate the change in value between 2019 and today, we use the following inflation rate formula:
CPI Today / CPI in 2019 x USD Value in 2019 = Current USD Value
By plugging the values into the formula above, we get:
296.276/ 255.658 x $1 = $1.16
To buy the same product that you could buy for $1 in 2019, you would need $1.16 in 2022.
To calculate the cumulative or total inflation rate in the past 3 years between 2019 and 2022, we use the following formula:
CPI in 2022 - CPI in 2019 / CPI in 2019 x 100 = Cumulative Inflation Rate
By inserting the values to this equation, we get:
( 296.276 - 255.658 / 255.658) x 100 = 15.89%
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 3 years between 2022 and 2019. The average inflation rate was 5.0378189186039%.
Plugging in the values into the formula, we get:
1 (1+ % 5.04/ 100 ) ^ 3 = $1.16