$100 in 2005 is worth $110 in 2008,
because prices increased 10.2% over that period, an average of
3.30% a year.
$100 in 2005 has
the same buying power as
$110
in 2008
Detailed inflation statistics
Cumulative price change
10.2%
Average inflation rate
3.30% per year
Converted amount ($100 base)
$110
Price difference ($100 base)
$10.24
CPI in 2005
195.3
CPI in 2008
215.303
Inflation in 2005
3.39%
Inflation in 2008
3.84%
$100 in 2005 → 2008
$110
$100 in 2008 → 2005
$90.71
What happened to prices between 2005 and 2008
Between 2005 and 2008, the Consumer Price Index went from 195.3 to 215.303.
Cumulatively, prices increased 10.2%, which works out to an average of
3.30% per year. Put differently, a dollar in 2005 bought what
$0.91 buys in 2008: the 2005 dollar
lost 9.3% of its purchasing power over
these 3 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 2008 at the same ratio, 1.10: $1,000 becomes
$1,102, and $10,000 becomes $11,024.
Amount in 2005
Value in 2008
$1.00
$1.10
$5.00
$5.51
$10.00
$11.02
$20.00
$22.05
$50.00
$55.12
$100
$110
$500
$551
$1,000
$1,102
$5,000
$5,512
$10,000
$11,024
$100,000
$110,242
$1,000,000
$1,102,422
Inflation by spending category, 2005–2008
Between 2005 and 2008, energy rose the most, up 33.6%, while apparel fell 0.5%, against 10.2% for all items. The headline number is an average; here is what $100 of 2005
spending costs in 2008, by category:
Category
Avg. yearly inflation
$100 in 2005 →
All items (CPI-U)
3.30%
$110
Energy
10.15%
$134
Medical care
4.05%
$113
Transportation
3.99%
$112
Food
3.93%
$112
Housing
3.39%
$111
Education & communication
2.83%
$109
Core (all items less food & energy)
2.38%
$107
Recreation
1.16%
$104
Apparel
-0.17%
$99.50
Year by year: CPI and the value of $100 from 2005
$100 from 2005 had already become $103 by
2006, on its way to $110 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 2.8% in 2007.
In 2008, prices rose 3.8% and $100 from 2005 had the buying
power of $110; 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 2005 to 2008: $100 is worth $110 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/2005-to-2008/
APA: InflationCalculator.com. Inflation from 2005 to 2008. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/2005-to-2008/