$100 in 2007 is worth $104 in 2008,
because prices increased 3.8% over that period, an average of
3.84% a year.
$100 in 2007 has
the same buying power as
$104
in 2008
Detailed inflation statistics
Cumulative price change
3.8%
Average inflation rate
3.84% per year
Converted amount ($100 base)
$104
Price difference ($100 base)
$3.84
CPI in 2007
207.342
CPI in 2008
215.303
Inflation in 2007
2.85%
Inflation in 2008
3.84%
$100 in 2007 → 2008
$104
$100 in 2008 → 2007
$96.30
What happened to prices between 2007 and 2008
Between 2007 and 2008, the Consumer Price Index went from 207.342 to 215.303.
Cumulatively, prices increased 3.8%, which works out to an average of
3.84% per year. Put differently, a dollar in 2007 bought what
$0.96 buys in 2008: the 2007 dollar
lost 3.7% of its purchasing power over
these 1 years.
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.
Every 2007 amount converts to 2008 at the same ratio, 1.04: $1,000 becomes
$1,038, and $10,000 becomes $10,384.
Amount in 2007
Value in 2008
$1.00
$1.04
$5.00
$5.19
$10.00
$10.38
$20.00
$20.77
$50.00
$51.92
$100
$104
$500
$519
$1,000
$1,038
$5,000
$5,192
$10,000
$10,384
$100,000
$103,840
$1,000,000
$1,038,396
Inflation by spending category, 2007–2008
Between 2007 and 2008, energy rose the most, up 13.9%, while apparel fell 0.1%, against 3.8% for all items. The headline number is an average; here is what $100 of 2007
spending costs in 2008, by category:
Category
Avg. yearly inflation
$100 in 2007 →
All items (CPI-U)
3.84%
$104
Energy
13.93%
$114
Transportation
5.88%
$106
Food
5.51%
$106
Medical care
3.71%
$104
Education & communication
3.39%
$103
Housing
3.19%
$103
Core (all items less food & energy)
2.30%
$102
Recreation
1.63%
$102
Apparel
-0.08%
$99.92
Year by year: CPI and the value of $100 from 2007
$100 from 2007grew to $104 by 2008; each row
shows the CPI, that year's inflation rate, and the running value.
In 2008, prices rose 3.8% and $100 from 2007 had the buying
power of $104; 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 2007 to 2008: $100 is worth $104 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/2007-to-2008/
APA: InflationCalculator.com. Inflation from 2007 to 2008. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/2007-to-2008/