$100 in 2000 is worth $120 in 2007,
because prices increased 20.4% over that period, an average of
2.69% a year.
$100 in 2000 has
the same buying power as
$120
in 2007
Detailed inflation statistics
Cumulative price change
20.4%
Average inflation rate
2.69% per year
Converted amount ($100 base)
$120
Price difference ($100 base)
$20.41
CPI in 2000
172.2
CPI in 2007
207.342
Inflation in 2000
3.36%
Inflation in 2007
2.85%
$100 in 2000 → 2007
$120
$100 in 2007 → 2000
$83.05
What happened to prices between 2000 and 2007
Between 2000 and 2007, the Consumer Price Index went from 172.2 to 207.342.
Cumulatively, prices increased 20.4%, which works out to an average of
2.69% per year. Put differently, a dollar in 2000 bought what
$0.83 buys in 2007: the 2000 dollar
lost 16.9% of its purchasing power over
these 7 years.
Inflation ran at 3.4% in 2000, the highest annual rate since 1991, as an economy growing
above 4% and a rise in oil prices pushed the CPI up. The median household earned about
$42,100, gas averaged $1.51 a gallon, and a new home cost roughly $169,000. The Federal
Reserve had raised interest rates six times since mid-1999 and stopped at 6.5% in May. By
then the stock market had already turned: the Nasdaq hit its record of 5,048 on March 10 and
lost about 39% of its value by December. Consumer prices did not reflect the slowdown yet,
which is why the Fed held rates high through the year even as technology companies began to
fail. In October, Congress granted China permanent normal trade relations, a decision that
would help hold down the price of manufactured goods for years. A first-class stamp cost 33
cents and the federal minimum wage was $5.15. The recession of 2001 brought inflation back
down.
Every 2000 amount converts to 2007 at the same ratio, 1.20: $1,000 becomes
$1,204, and $10,000 becomes $12,041.
Amount in 2000
Value in 2007
$1.00
$1.20
$5.00
$6.02
$10.00
$12.04
$20.00
$24.08
$50.00
$60.20
$100
$120
$500
$602
$1,000
$1,204
$5,000
$6,020
$10,000
$12,041
$100,000
$120,408
$1,000,000
$1,204,077
Inflation by spending category, 2000–2007
Between 2000 and 2007, energy rose the most, up 66.7%, while apparel fell 8.2%, against 20.4% for all items. The headline number is an average; here is what $100 of 2000
spending costs in 2007, by category:
Category
Avg. yearly inflation
$100 in 2000 →
All items (CPI-U)
2.69%
$120
Energy
7.57%
$167
Medical care
4.34%
$135
Housing
3.07%
$124
Food
2.75%
$121
Transportation
2.70%
$120
Education & communication
2.23%
$117
Core (all items less food & energy)
2.17%
$116
Recreation
1.09%
$108
Apparel
-1.21%
$91.82
Year by year: CPI and the value of $100 from 2000
$100 from 2000 had already become $107 by
2003, on its way to $120 in 2007; each row shows the CPI, that
year's inflation rate, and the running value.
Within the span, inflation peaked at 3.4% in 2005, and the smallest rise was 1.6% in 2002.
In 2007, prices rose 2.8% and $100 from 2000 had the buying
power of $120; the year's average CPI of 207.342 is the level
behind every 2007 figure on this page.
Inflation was 2.8% in 2007, with gasoline averaging $2.80 a gallon, but the year is better
known for what began underneath prices. In August, French bank BNP Paribas froze funds tied to
U.S. subprime mortgages, and credit between banks tightened. The Federal Reserve responded with
a half-point cut on September 18, its first in four years, and took the policy rate from 5.25% to
4.25% by December. The economy peaked that month, by the National Bureau of Economic Research’s
dating, and the Great Recession followed. The median household earned about $50,200, and the
median new home cost $247,900. Congress ended the decade-long freeze on the federal minimum wage
in May, with the first of three steps to $5.85 in July. A first-class stamp cost 41 cents.
MLA: “Inflation from 2000 to 2007: $100 is worth $120 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/2000-to-2007/
APA: InflationCalculator.com. Inflation from 2000 to 2007. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/2000-to-2007/