$100 in 2002 is worth $120 in 2008,
because prices increased 19.7% over that period, an average of
3.04% a year.
$100 in 2002 has
the same buying power as
$120
in 2008
Detailed inflation statistics
Cumulative price change
19.7%
Average inflation rate
3.04% per year
Converted amount ($100 base)
$120
Price difference ($100 base)
$19.68
CPI in 2002
179.9
CPI in 2008
215.303
Inflation in 2002
1.58%
Inflation in 2008
3.84%
$100 in 2002 → 2008
$120
$100 in 2008 → 2002
$83.56
What happened to prices between 2002 and 2008
Between 2002 and 2008, the Consumer Price Index went from 179.9 to 215.303.
Cumulatively, prices increased 19.7%, which works out to an average of
3.04% per year. Put differently, a dollar in 2002 bought what
$0.84 buys in 2008: the 2002 dollar
lost 16.4% of its purchasing power over
these 6 years.
The CPI rose 1.6% in 2002, the lowest annual rate of the decade so far, with gasoline down to an
average of $1.36 a gallon and slack in the labor market keeping wage pressure low. The median
household earned about $42,400, and a new home cost roughly $187,600, an increase of about 7%
from the year before as low mortgage rates began to lift housing. The Federal Reserve cut its
policy rate to 1.25% in November. Stocks were moving the other way: after the Enron and WorldCom
scandals, the S&P 500 hit its bear-market low on October 9, about 49% below its March 2000
peak, and Congress passed the Sarbanes-Oxley Act in July to tighten corporate accounting rules.
On January 1, euro banknotes and coins replaced national currencies in 12 European countries. A
first-class stamp rose to 37 cents in June, and the federal minimum wage stayed at $5.15.
Every 2002 amount converts to 2008 at the same ratio, 1.20: $1,000 becomes
$1,197, and $10,000 becomes $11,968.
Amount in 2002
Value in 2008
$1.00
$1.20
$5.00
$5.98
$10.00
$11.97
$20.00
$23.94
$50.00
$59.84
$100
$120
$500
$598
$1,000
$1,197
$5,000
$5,984
$10,000
$11,968
$100,000
$119,679
$1,000,000
$1,196,793
Inflation by spending category, 2002–2008
Between 2002 and 2008, energy rose the most, up 94.5%, while apparel fell 4.1%, against 19.7% for all items. The headline number is an average; here is what $100 of 2002
spending costs in 2008, by category:
Category
Avg. yearly inflation
$100 in 2002 →
All items (CPI-U)
3.04%
$120
Energy
11.72%
$194
Transportation
4.19%
$128
Medical care
4.13%
$127
Food
3.30%
$122
Housing
3.08%
$120
Education & communication
2.29%
$115
Core (all items less food & energy)
2.08%
$113
Recreation
1.08%
$107
Apparel
-0.70%
$95.89
Year by year: CPI and the value of $100 from 2002
$100 from 2002 had already become $109 by
2005, on its way to $120 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 2.3% in 2003.
In 2008, prices rose 3.8% and $100 from 2002 had the buying
power of $120; 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 2002 to 2008: $100 is worth $120 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/2002-to-2008/
APA: InflationCalculator.com. Inflation from 2002 to 2008. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/2002-to-2008/