Value of $100 in 2010, adjusted to 2020

What happened to prices between 2010 and 2020

Between 2010 and 2020, the Consumer Price Index went from 218.056 to 258.811. Cumulatively, prices increased 18.7%, which works out to an average of 1.73% per year. Put differently, a dollar in 2010 bought what $0.84 buys in 2020: the 2010 dollar lost 15.7% of its purchasing power over these 10 years.

2010 was a year of recovery without much price pressure. The CPI rose 1.6%, a return to growth after 2009’s deflation, with gasoline averaging $2.78 a gallon as energy prices climbed back from their recession lows. Housing costs barely moved: millions of foreclosed and vacant homes kept rents soft, and the median new home sold for about $221,800. The federal minimum wage stayed at $7.25, the level set in July 2009, and a first-class stamp cost 44 cents.

The Federal Reserve was more worried about too little inflation than too much. Its policy rate sat at 0–0.25%, and in November it announced a further $600 billion of Treasury purchases to hold down long-term borrowing costs. Congress passed the Dodd-Frank Act in July to tighten financial regulation, while a 110 billion euro rescue of Greece in May showed that the crisis had moved from American mortgages to European government debt. For anyone comparing dollars across the decade, 2010 is a useful baseline: prices were still close to their 2008 levels, and the years ahead brought a slow, steady climb.

More about inflation in 2010 →

The destination year: 2020

In 2020, prices rose 1.2% and $100 from 2010 had the buying power of $119; the year's average CPI of 258.811 is the level behind every 2020 figure on this page.

2020 was the year the pandemic rewired the price data without triggering the inflation spike that followed it. Consumer prices rose just 1.2% for the year, the mildest pace since 2015, as COVID-19 lockdowns emptied roads, closed airports, and crushed energy demand. Oil told the starkest story: on April 20, U.S. crude futures fell to about negative $37 a barrel, the first negative settlement in the market’s history, as storage capacity ran out and no one wanted the physical barrels. Gasoline followed it down, falling to about $1.80 a gallon nationally that month before recovering to average $2.17 for the year. Grocery prices moved the other way: pantry stocking and meatpacking-plant disruptions pushed food-at-home costs up faster than usual, a rare case of food and energy pulling the index in opposite directions. Washington answered with the $2.2 trillion CARES Act, signed March 27, which sent $1,200 payments to most adults and added $600 a week to unemployment benefits as states ordered widespread business closures. The Federal Reserve cut its policy rate to near zero in two emergency moves that same month and pledged to buy Treasury and mortgage bonds “in the amounts needed” to keep credit markets working, an open-ended commitment beyond even its 2008 response. None of it showed up in the CPI yet: the stimulus, the supply shocks, and the reopening whiplash that followed would build into the fastest inflation in four decades over the next two years.

More about inflation in 2020 →