$100 in 2005 is worth $106 in 2007,
because prices increased 6.2% over that period, an average of
3.04% a year.
$100 in 2005 has
the same buying power as
$106
in 2007
Detailed inflation statistics
Cumulative price change
6.2%
Average inflation rate
3.04% per year
Converted amount ($100 base)
$106
Price difference ($100 base)
$6.17
CPI in 2005
195.3
CPI in 2007
207.342
Inflation in 2005
3.39%
Inflation in 2007
2.85%
$100 in 2005 → 2007
$106
$100 in 2007 → 2005
$94.19
What happened to prices between 2005 and 2007
Between 2005 and 2007, the Consumer Price Index went from 195.3 to 207.342.
Cumulatively, prices increased 6.2%, which works out to an average of
3.04% per year. Put differently, a dollar in 2005 bought what
$0.94 buys in 2007: the 2005 dollar
lost 5.8% of its purchasing power over
these 2 years.
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.
Every 2005 amount converts to 2007 at the same ratio, 1.06: $1,000 becomes
$1,062, and $10,000 becomes $10,617.
Amount in 2005
Value in 2007
$1.00
$1.06
$5.00
$5.31
$10.00
$10.62
$20.00
$21.23
$50.00
$53.08
$100
$106
$500
$531
$1,000
$1,062
$5,000
$5,308
$10,000
$10,617
$100,000
$106,166
$1,000,000
$1,061,659
Inflation by spending category, 2005–2007
Between 2005 and 2007, energy rose the most, up 17.3%, while apparel fell 0.4%, against 6.2% for all items. The headline number is an average; here is what $100 of 2005
spending costs in 2007, by category:
Category
Avg. yearly inflation
$100 in 2005 →
All items (CPI-U)
3.04%
$106
Energy
8.30%
$117
Medical care
4.22%
$109
Housing
3.49%
$107
Food
3.15%
$106
Transportation
3.05%
$106
Education & communication
2.55%
$105
Core (all items less food & energy)
2.42%
$105
Recreation
0.93%
$102
Apparel
-0.21%
$99.58
Year by year: CPI and the value of $100 from 2005
$100 from 2005 had already become $103 by
2006, on its way to $106 in 2007; each row shows the CPI, that
year's inflation rate, and the running value.
Within the span, inflation peaked at 3.2% in 2006, and the smallest rise was 2.8% in 2007.
In 2007, prices rose 2.8% and $100 from 2005 had the buying
power of $106; 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 2005 to 2007: $100 is worth $106 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/2005-to-2007/
APA: InflationCalculator.com. Inflation from 2005 to 2007. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/2005-to-2007/