$100 in 2005 is worth $110 in 2009,
because prices increased 9.8% over that period, an average of
2.38% a year.
$100 in 2005 has
the same buying power as
$110
in 2009
Detailed inflation statistics
Cumulative price change
9.8%
Average inflation rate
2.38% per year
Converted amount ($100 base)
$110
Price difference ($100 base)
$9.85
CPI in 2005
195.3
CPI in 2009
214.537
Inflation in 2005
3.39%
Inflation in 2009
-0.36%
$100 in 2005 → 2009
$110
$100 in 2009 → 2005
$91.03
What happened to prices between 2005 and 2009
Between 2005 and 2009, the Consumer Price Index went from 195.3 to 214.537.
Cumulatively, prices increased 9.8%, which works out to an average of
2.38% per year. Put differently, a dollar in 2005 bought what
$0.91 buys in 2009: the 2005 dollar
lost 9.0% of its purchasing power over
these 4 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 2009 at the same ratio, 1.10: $1,000 becomes
$1,098, and $10,000 becomes $10,985.
Amount in 2005
Value in 2009
$1.00
$1.10
$5.00
$5.49
$10.00
$10.98
$20.00
$21.97
$50.00
$54.92
$100
$110
$500
$549
$1,000
$1,098
$5,000
$5,492
$10,000
$10,985
$100,000
$109,850
$1,000,000
$1,098,500
Inflation by spending category, 2005–2009
Between 2005 and 2009, medical care rose the most, up 16.2%, while apparel rose the least, up 0.5%, against 9.8% for all items. The headline number is an average; here is what $100 of 2005
spending costs in 2009, by category:
Category
Avg. yearly inflation
$100 in 2005 →
All items (CPI-U)
2.38%
$110
Medical care
3.83%
$116
Food
3.40%
$114
Education & communication
2.88%
$112
Housing
2.62%
$111
Core (all items less food & energy)
2.21%
$109
Energy
2.19%
$109
Recreation
1.10%
$104
Transportation
0.76%
$103
Apparel
0.12%
$100
Year by year: CPI and the value of $100 from 2005
$100 from 2005 had already become $106 by
2007, on its way to $110 in 2009; 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 prices fell 0.4% in 2009, the deepest deflation of the period.
In 2009, prices fell 0.4% and $100 from 2005 had the buying
power of $110; the year's average CPI of 214.537 is the level
behind every 2009 figure on this page.
2009 is the rarest kind of year in the modern price data: one where the cost
of living went down. The CPI fell 0.4%, the first full-year deflation
since 1955, as the Great Recession hollowed out demand and oil unwound from
its $147 spike the summer before. Gasoline that had cost over $4 a gallon in
July 2008 averaged $2.35 in 2009, and that energy collapse dragged the
12-month inflation rate to −2.1% by July, the deepest reading since 1950.
Policymakers treated falling prices not as relief but as a warning: deflation
raises the real weight of debt precisely when households are drowning in it,
which is why the Federal Reserve pinned interest rates near zero, began buying
bonds by the hundreds of billions, and Washington passed a $787 billion
stimulus. The medicine took: prices stabilized within a year, and 2009 remains
the textbook case of why central banks fear deflation more than moderate
inflation.
MLA: “Inflation from 2005 to 2009: $100 is worth $110 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/2005-to-2009/
APA: InflationCalculator.com. Inflation from 2005 to 2009. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/2005-to-2009/