$100 in 2000 is worth $125 in 2008,
because prices increased 25.0% over that period, an average of
2.83% a year.
$100 in 2000 has
the same buying power as
$125
in 2008
Detailed inflation statistics
Cumulative price change
25.0%
Average inflation rate
2.83% per year
Converted amount ($100 base)
$125
Price difference ($100 base)
$25.03
CPI in 2000
172.2
CPI in 2008
215.303
Inflation in 2000
3.36%
Inflation in 2008
3.84%
$100 in 2000 → 2008
$125
$100 in 2008 → 2000
$79.98
What happened to prices between 2000 and 2008
Between 2000 and 2008, the Consumer Price Index went from 172.2 to 215.303.
Cumulatively, prices increased 25.0%, which works out to an average of
2.83% per year. Put differently, a dollar in 2000 bought what
$0.80 buys in 2008: the 2000 dollar
lost 20.0% of its purchasing power over
these 8 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 2008 at the same ratio, 1.25: $1,000 becomes
$1,250, and $10,000 becomes $12,503.
Amount in 2000
Value in 2008
$1.00
$1.25
$5.00
$6.25
$10.00
$12.50
$20.00
$25.01
$50.00
$62.52
$100
$125
$500
$625
$1,000
$1,250
$5,000
$6,252
$10,000
$12,503
$100,000
$125,031
$1,000,000
$1,250,308
Inflation by spending category, 2000–2008
Between 2000 and 2008, energy rose the most, up 89.9%, while apparel fell 8.3%, against 25.0% for all items. The headline number is an average; here is what $100 of 2000
spending costs in 2008, by category:
Category
Avg. yearly inflation
$100 in 2000 →
All items (CPI-U)
2.83%
$125
Energy
8.35%
$190
Medical care
4.26%
$140
Food
3.09%
$128
Transportation
3.09%
$128
Housing
3.08%
$128
Education & communication
2.37%
$121
Core (all items less food & energy)
2.19%
$119
Recreation
1.16%
$110
Apparel
-1.07%
$91.75
Year by year: CPI and the value of $100 from 2000
$100 from 2000 had already become $110 by
2004, on its way to $125 in 2008; each row shows the CPI, that
year's inflation rate, and the running value.
Within the span, inflation peaked at 3.8% in 2008, and the smallest rise was 1.6% in 2002.
In 2008, prices rose 3.8% and $100 from 2000 had the buying
power of $125; the year's average CPI of 215.303 is the level
behind every 2008 figure on this page.
Inflation averaged 3.8% in 2008, but that figure hides a swing. The 12-month rate reached 5.6% in
July, when oil hit $147 a barrel and gasoline passed $4 a gallon, then fell to 0.1% by December
as crude dropped near $40. For the year, gas averaged $3.27, the highest yet. The financial
system broke in the fall: Lehman Brothers filed for bankruptcy on September 15, Congress
created the $700 billion TARP bank rescue on October 3, and the Federal Reserve cut its policy
rate to a range of 0–0.25% in December. The median household earned about $50,300, barely
above 2007, and the median new home price fell to $232,100. The minimum wage rose to $6.55 in
July, and a first-class stamp cost 42 cents. The price collapse at the end of 2008 set up the
deflation of 2009.
MLA: “Inflation from 2000 to 2008: $100 is worth $125 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/2000-to-2008/
APA: InflationCalculator.com. Inflation from 2000 to 2008. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/2000-to-2008/