$100 in 2004 is worth $107 in 2006,
because prices increased 6.7% over that period, an average of
3.31% a year.
$100 in 2004 has
the same buying power as
$107
in 2006
Detailed inflation statistics
Cumulative price change
6.7%
Average inflation rate
3.31% per year
Converted amount ($100 base)
$107
Price difference ($100 base)
$6.72
CPI in 2004
188.9
CPI in 2006
201.6
Inflation in 2004
2.66%
Inflation in 2006
3.23%
$100 in 2004 → 2006
$107
$100 in 2006 → 2004
$93.70
What happened to prices between 2004 and 2006
Between 2004 and 2006, the Consumer Price Index went from 188.9 to 201.6.
Cumulatively, prices increased 6.7%, which works out to an average of
3.31% per year. Put differently, a dollar in 2004 bought what
$0.94 buys in 2006: the 2004 dollar
lost 6.3% of its purchasing power over
these 2 years.
Consumer prices rose 2.7% in 2004, with a 29-cent jump in the price of gasoline, to $1.88 a
gallon, doing much of the work. Crude oil passed $50 a barrel in October on rising demand
from China and India. The Federal Reserve raised rates for the first time in four years on
June 30, to 1.25%, and it kept going: 17 consecutive quarter-point increases took the rate to
5.25% by June 2006. Housing was already running ahead of incomes. The median household earned
about $44,300, up 2.3% from 2003, while the median new home sold for $221,000, up about 13%. A
first-class stamp stayed at 37 cents and the federal minimum wage at $5.15, unchanged since
1997.
Every 2004 amount converts to 2006 at the same ratio, 1.07: $1,000 becomes
$1,067, and $10,000 becomes $10,672.
Amount in 2004
Value in 2006
$1.00
$1.07
$5.00
$5.34
$10.00
$10.67
$20.00
$21.34
$50.00
$53.36
$100
$107
$500
$534
$1,000
$1,067
$5,000
$5,336
$10,000
$10,672
$100,000
$106,723
$1,000,000
$1,067,231
Inflation by spending category, 2004–2006
Between 2004 and 2006, energy rose the most, up 30.1%, while apparel fell 0.7%, against 6.7% for all items. The headline number is an average; here is what $100 of 2004
spending costs in 2006, by category:
Category
Avg. yearly inflation
$100 in 2004 →
All items (CPI-U)
3.31%
$107
Energy
14.04%
$130
Transportation
5.32%
$111
Medical care
4.12%
$108
Housing
3.55%
$107
Food
2.39%
$105
Core (all items less food & energy)
2.34%
$105
Education & communication
2.30%
$105
Recreation
1.05%
$102
Apparel
-0.37%
$99.25
Year by year: CPI and the value of $100 from 2004
$100 from 2004 had already become $103 by
2005, on its way to $107 in 2006; 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 3.2% in 2006.
In 2006, prices rose 3.2% and $100 from 2004 had the buying
power of $107; the year's average CPI of 201.6 is the level
behind every 2006 figure on this page.
Inflation was 3.2% in 2006 and gasoline averaged $2.59 a gallon, up 29 cents from 2005. The
median household earned about $48,200 and the median new home cost $246,500, a gain of about
2% after a 13% jump in 2004 and 9% in 2005. National home prices, by the S&P/Case-Shiller
index, peaked in mid-2006. Ben Bernanke replaced Alan Greenspan as Federal Reserve chair on
February 1, and on June 29 the Fed raised its policy rate to 5.25%, the last of 17 straight
quarter-point increases. It held there for over a year. A first-class stamp rose to 39 cents in
January, and the federal minimum wage was $5.15 for the ninth full year in a row.
MLA: “Inflation from 2004 to 2006: $100 is worth $107 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/2004-to-2006/
APA: InflationCalculator.com. Inflation from 2004 to 2006. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/2004-to-2006/