Value of $100 in 2020, adjusted to 2023

What happened to prices between 2020 and 2023

Between 2020 and 2023, the Consumer Price Index went from 258.811 to 304.702. Cumulatively, prices increased 17.7%, which works out to an average of 5.59% per year. Put differently, a dollar in 2020 bought what $0.85 buys in 2023: the 2020 dollar lost 15.1% of its purchasing power over these 3 years.

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.

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The destination year: 2023

In 2023, prices rose 4.1% and $100 from 2020 had the buying power of $118; the year's average CPI of 304.702 is the level behind every 2023 figure on this page.

2023 was the year inflation came down without a recession. Consumer prices rose 4.1% on average, roughly half of 2022’s 8.0%, and the December-to-December rate fell to 3.4%. Gasoline averaged $3.52 a gallon, well below the 2022 average, and supply-chain pressure on goods eased. Shelter, restaurant meals, and other services stayed expensive, so the CPI kept rising at a rate well above the pre-pandemic pace.

The Federal Reserve completed its rate-hiking campaign in July, taking the policy rate to 5.25–5.50%, the highest level in 22 years. The effects showed up in banking: Silicon Valley Bank failed in March after rate increases eroded the value of its bond portfolio, the second-largest bank failure in U.S. history at the time. Despite that, unemployment stayed under 4% all year.

Median household income was $80,610 according to the Census Bureau. The federal minimum wage stayed at $7.25, and a first-class stamp rose to 66 cents in July.

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