$100 in 2001 is worth $110 in 2005,
because prices increased 10.3% over that period, an average of
2.48% a year.
$100 in 2001 has
the same buying power as
$110
in 2005
Detailed inflation statistics
Cumulative price change
10.3%
Average inflation rate
2.48% per year
Converted amount ($100 base)
$110
Price difference ($100 base)
$10.28
CPI in 2001
177.1
CPI in 2005
195.3
Inflation in 2001
2.85%
Inflation in 2005
3.39%
$100 in 2001 → 2005
$110
$100 in 2005 → 2001
$90.68
What happened to prices between 2001 and 2005
Between 2001 and 2005, the Consumer Price Index went from 177.1 to 195.3.
Cumulatively, prices increased 10.3%, which works out to an average of
2.48% per year. Put differently, a dollar in 2001 bought what
$0.91 buys in 2005: the 2001 dollar
lost 9.3% of its purchasing power over
these 4 years.
Inflation fell to 2.8% in 2001 from 3.4% the year before, as a recession that began in March
cut demand and gasoline slid to an average of $1.46 a gallon. The median household earned about
$42,200, roughly flat from 2000, and a new home cost about $175,200. The Federal Reserve cut its
policy rate 11 times over the year, from 6.5% to 1.75%, the lowest since 1961. After the
September 11 attacks, U.S. stock markets closed for four trading days, and air travel dropped
sharply until the following year. Congress had already passed a $1.35 trillion tax cut in June,
which included rebate checks of up to $600. The National Bureau of Economic Research dates the
recession’s end at November, but unemployment kept rising into 2003. A first-class stamp went to
34 cents in January, and the federal minimum wage stayed at $5.15. The Fed’s cuts were the
first step in a long period of very cheap borrowing that would fuel the housing boom.
Every 2001 amount converts to 2005 at the same ratio, 1.10: $1,000 becomes
$1,103, and $10,000 becomes $11,028.
Amount in 2001
Value in 2005
$1.00
$1.10
$5.00
$5.51
$10.00
$11.03
$20.00
$22.06
$50.00
$55.14
$100
$110
$500
$551
$1,000
$1,103
$5,000
$5,514
$10,000
$11,028
$100,000
$110,277
$1,000,000
$1,102,767
Inflation by spending category, 2001–2005
Between 2001 and 2005, energy rose the most, up 37.0%, while apparel fell 6.1%, against 10.3% for all items. The headline number is an average; here is what $100 of 2001
spending costs in 2005, by category:
Category
Avg. yearly inflation
$100 in 2001 →
All items (CPI-U)
2.48%
$110
Energy
8.18%
$137
Medical care
4.33%
$118
Transportation
3.03%
$113
Housing
2.63%
$111
Food
2.45%
$110
Education & communication
1.96%
$108
Core (all items less food & energy)
1.93%
$108
Recreation
1.06%
$104
Apparel
-1.57%
$93.87
Year by year: CPI and the value of $100 from 2001
$100 from 2001 had already become $104 by
2003, on its way to $110 in 2005; 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 2005, prices rose 3.4% and $100 from 2001 had the buying
power of $110; the year's average CPI of 195.3 is the level
behind every 2005 figure on this page.
Inflation rose to 3.4% in 2005, up from 2.7% in 2004, as gasoline averaged $2.30 a gallon,
compared with $1.88 the year before. Hurricane Katrina made landfall on August 29, and with
Hurricane Rita weeks later it disrupted Gulf Coast refining, pushing the national average
price past $3 in early September. The Federal Reserve raised its policy rate at every meeting,
from 2.25% to 4.25%, to keep energy costs from feeding into other prices. The median household
earned about $46,300, up 4.5% from 2004, but the median new home price rose a further 9%, to
$240,900. In April, Congress passed a bankruptcy law that made it harder to clear debts. A
first-class stamp stayed at 37 cents until January 2006, and the federal minimum wage stayed
at $5.15.
MLA: “Inflation from 2001 to 2005: $100 is worth $110 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/2001-to-2005/
APA: InflationCalculator.com. Inflation from 2001 to 2005. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/2001-to-2005/