Why this matters more than the calculator shows
A $30,000 salary in 1985 is roughly $90,000 in 2025 USD — but that's the US CPI. Argentina's inflation over the same period was over 100,000,000%. Comparing salaries or pensions across decades without adjusting for inflation is one of the most common errors in journalism and contract negotiation. The multi-country panel makes the dispersion visible.
FAQ
Which CPI is "the" CPI?
There are several: CPI-U (all urban consumers, the headline US number), CPI-W (urban wage earners), CPI-E (experimental for the elderly), PCE (the Fed's preferred measure), and core CPI (excluding food and energy). They differ slightly. This tool uses CPI-U for the US and the official national CPI for other countries, which is the most common default for general-purpose adjustment.
Why isn't the present value of a 1990 house $1,000,000+?
Because housing prices rose faster than general CPI. The CPI measures a basket of consumer goods — not asset prices. For real estate, you want a house price index, which rose much faster than CPI in most countries. Same for education, healthcare, and stocks.
How accurate is the future projection?
Not very. This tool assumes a constant inflation rate going forward, which is unrealistic. A 20-year projection should be taken as an order-of-magnitude estimate. For actual financial planning, run the projection with a 1% inflation band on either side and look at the range.
Methodology
Past → today: amount × CPI(2025) / CPI(reference year). Future → today: amount × (1 + avg_inflation)years. Country CPI series are simplified annual averages from World Bank / IMF / national statistics offices. Where a country had hyperinflation (Argentina 1989–1991, Zimbabwe 2007–2008), the tool uses the published CPI directly and the cumulative number can be enormous — that's the data, not an error. Source: World Bank FP.CPI.TOTL.ZG, OECD CPI, IMF International Financial Statistics.