Inflation ran at 3.4% in 2000, the highest annual rate since 1991, as an economy growing above 4% and a rise in oil prices pushed the CPI up. The median household earned about $42,100, gas averaged $1.51 a gallon, and a new home cost roughly $169,000. The Federal Reserve had raised interest rates six times since mid-1999 and stopped at 6.5% in May. By then the stock market had already turned: the Nasdaq hit its record of 5,048 on March 10 and lost about 39% of its value by December. Consumer prices did not reflect the slowdown yet, which is why the Fed held rates high through the year even as technology companies began to fail. In October, Congress granted China permanent normal trade relations, a decision that would help hold down the price of manufactured goods for years. A first-class stamp cost 33 cents and the federal minimum wage was $5.15. The recession of 2001 brought inflation back down.
Year in review
Inflation in 2000
The U.S. inflation rate in 2000 was 3.4% (CPI: 172.2). Convert 2000 dollars to today →
3.4% 2000 inflation rate
2.6% 2000s average
3.8% peak month (Mar)
2.7% lowest month (Jan)
What things cost in 2000
In 2000, the median household income was $42,148, and a gallon of gas cost $1.51.
| Median household income | $42,148 |
|---|---|
| Gas (per gallon) | $1.51 |
| Median home price | $169,000 |
| First-class stamp | $0.33 |
| Federal minimum wage | $5.15 |
What $100 from 2000 was worth later
$100 from 2000 had the buying power of $193 by 2026; each milestone links to that conversion.
| In 2010 | $127 |
|---|---|
| In 2020 | $150 |
| In 2026 | $193 |
Inflation in 2000, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 168.8 | 2.7% |
| February | 169.8 | 3.2% |
| March | 171.2 | 3.8% |
| April | 171.3 | 3.1% |
| May | 171.5 | 3.2% |
| June | 172.4 | 3.7% |
| July | 172.8 | 3.7% |
| August | 172.8 | 3.4% |
| September | 173.7 | 3.5% |
| October | 174 | 3.4% |
| November | 174.1 | 3.4% |
| December | 174 | 3.4% |
Economic events of 2000
The Nasdaq peaks at 5,048 in March, then the dot-com bubble begins to burst; prices rose 3.4% that year.
- The Nasdaq peaks at 5,048 in March, then the dot-com bubble begins to burst The Nasdaq Composite closed at its record on March 10 after a five-year run on internet-stock valuations. It fell about 39% over the rest of the year as companies that had never turned a profit ran out of funding.
- The Fed raises its policy rate to 6.5% by May The Federal Reserve lifted the federal funds rate six times between June 1999 and May 2000 to slow an economy growing above 4%. It then held at 6.5% through the end of the year.
- Congress grants China permanent normal trade relations Signed in October, the law ended the annual congressional review of China's trade status and cleared the way for its entry into the World Trade Organization in 2001, opening U.S. markets to a surge of low-priced imports.
Sources: U.S. Census Bureau, Current Population Survey (income); U.S. Census Bureau, New Residential Sales (home price); U.S. Energy Information Administration (gasoline); U.S. Department of Labor (minimum wage); USPS historical rates.
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.