11/29/2022 0 Comments Currency rates 2015In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account. These numbers are not inflation adjusted, so they are considered nominal. This is a return on investment of 115.37%, with an absolute return of $1.15 on top of the original $1. To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 2015, our investment would be nominally worth approximately $2.15 in 2022. As noted above, this yearly inflation rate compounds to produce an overall price difference of 25.23% over 7 years. The average inflation rate of 3.27% has a compounding effect between 20. Chained inflation averaged 2.66% per year between 20, a total inflation amount of 20.13%.Īccording to the Chained CPI measurement, $1 in 2015 is equal in buying power to $1.20 in 2022, a difference of $0.20 (versus a converted amount of $1.25/change of $0.25 for All Items). Chained InflationĬhained CPI is an alternative measurement that takes into account how consumers adjust spending for similar items. Recall that the converted amount is $1.25 when all items including food and energy are measured. When using the core inflation measurement, $1 in 2015 is equivalent in buying power to $1.21 in 2022, a difference of $0.21. Core InflationĪlso of note is the Core CPI, which uses the standard CPI but omits the more volatile categories of food and energy.Ĭore inflation averaged 2.73% per year between 20 (vs all-CPI inflation of 3.27%), for an inflation total of 20.75%. The PCE measured -6.98% inflation compared to standard CPI.įor more information on the difference between PCE and CPI, see this analysis provided by the Bureau of Labor Statistics. Compare this to the standard CPI measurement, which equates $1 with $1.25. This means that the PCE Index equates $1 in 2015 with $1.18 in 2022, a difference of $0.18. The total PCE inflation between these dates was 18.25%. The PCE Price Index changed by 2.42% per year on average between 20. It measures the change in prices of goods and services purchased by consumers. Federal Reserve's preferred measure of inflation, compiled by the Bureau of Economic Analysis. Personal Consumption Expenditures (PCE) Inflation Below are a few examples of alternative measurements. The Consumer Price Index, used above, is the most common standard used globally.Īlternative measurements are sometimes used based on context and economic/political circumstances. Published rates of inflation will vary depending on methodology. There are multiple ways to measure inflation. In Canada, CA$1.00 in 2015 would be equivalent to CA$1.20 in 2022, an absolute change of CA$0.20 and a cumulative change of 19.94%. For comparison, in the UK £1.00 in 2015 would be equivalent to £1.23 in 2022, an absolute change of £0.23 and a cumulative change of 23.22%. Inflation can also vary widely by country. Note that some locations showing 0% inflation may have not yet reported latest data. Minneapolis-St Paul, Minnesota experienced the lowest rate of inflation during the 7 years between 20 (2.36%). San Diego, California experienced the highest rate of inflation during the 7 years between 20 (3.91%). Minneapolis-St Paul, Minnesota: 2.36% average rate, $1 → $1.15, cumulative change of 15.04%.Philadelphia, Pennsylvania: 2.37% average rate, $1 → $1.18, cumulative change of 17.82%.St Louis, Missouri: 2.51% average rate, $1 → $1.19, cumulative change of 18.93%.Chicago, Illinois: 2.61% average rate, $1 → $1.20, cumulative change of 19.76%.Tampa, Florida: 2.68% average rate, $1 → $1.17, cumulative change of 17.20%.Houston, Texas: 2.68% average rate, $1 → $1.20, cumulative change of 20.37%.Denver, Colorado: 2.72% average rate, $1 → $1.17, cumulative change of 17.44%.Detroit, Michigan: 2.78% average rate, $1 → $1.21, cumulative change of 21.12%.Boston, Massachusetts: 2.82% average rate, $1 → $1.22, cumulative change of 21.50%.Phoenix, Arizona: 3.02% average rate, $1 → $1.20, cumulative change of 19.54%.Dallas-Fort Worth, Texas: 3.22% average rate, $1 → $1.25, cumulative change of 24.85%.Miami-Fort Lauderdale, Florida: 3.27% average rate, $1 → $1.25, cumulative change of 25.30%.San Francisco, California: 3.32% average rate, $1 → $1.26, cumulative change of 25.70%.Seattle, Washington: 3.51% average rate, $1 → $1.27, cumulative change of 27.34%.Atlanta, Georgia: 3.67% average rate, $1 → $1.29, cumulative change of 28.70%. San Diego, California: 3.91% average rate, $1 → $1.26, cumulative change of 25.84%.Here's how some cities fared in 2015 to 2022 (figures shown are purchasing power equivalents of $1): Inflation can vary widely by city, even within the United States.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |