The CPI rose 1.6% in 2002, the lowest annual rate of the decade so far, with gasoline down to an average of $1.36 a gallon and slack in the labor market keeping wage pressure low. The median household earned about $42,400, and a new home cost roughly $187,600, an increase of about 7% from the year before as low mortgage rates began to lift housing. The Federal Reserve cut its policy rate to 1.25% in November. Stocks were moving the other way: after the Enron and WorldCom scandals, the S&P 500 hit its bear-market low on October 9, about 49% below its March 2000 peak, and Congress passed the Sarbanes-Oxley Act in July to tighten corporate accounting rules. On January 1, euro banknotes and coins replaced national currencies in 12 European countries. A first-class stamp rose to 37 cents in June, and the federal minimum wage stayed at $5.15.
Year in review
Inflation in 2002
The U.S. inflation rate in 2002 was 1.6% (CPI: 179.9). Convert 2002 dollars to today →
1.6% 2002 inflation rate
2.6% 2000s average
2.4% peak month (Dec)
1.1% lowest month (Jun)
What things cost in 2002
In 2002, the median household income was $42,409, and a gallon of gas cost $1.36.
| Median household income | $42,409 |
|---|---|
| Gas (per gallon) | $1.36 |
| Median home price | $187,600 |
| First-class stamp | $0.37 |
| Federal minimum wage | $5.15 |
What $100 from 2002 was worth later
$100 from 2002 had the buying power of $185 by 2026; each milestone links to that conversion.
| In 2010 | $121 |
|---|---|
| In 2020 | $144 |
| In 2026 | $185 |
Inflation in 2002, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 177.1 | 1.1% |
| February | 177.8 | 1.1% |
| March | 178.8 | 1.5% |
| April | 179.8 | 1.6% |
| May | 179.8 | 1.2% |
| June | 179.9 | 1.1% |
| July | 180.1 | 1.5% |
| August | 180.7 | 1.8% |
| September | 181 | 1.5% |
| October | 181.3 | 2.0% |
| November | 181.3 | 2.2% |
| December | 180.9 | 2.4% |
Economic events of 2002
Euro banknotes and coins enter circulation in 12 countries; prices rose 1.6% that year.
- Euro banknotes and coins enter circulation in 12 countries On January 1, physical euro cash replaced the French franc, German mark, and ten other national currencies, three years after the euro began as an accounting unit.
- Congress passes the Sarbanes-Oxley Act after the Enron and WorldCom scandals Signed in July, the law required company executives to certify their financial statements and created an oversight board for auditors. WorldCom's bankruptcy that month was the largest in U.S. history at the time.
- Stocks hit their bear-market low in October The S&P 500 closed at its low on October 9, down about 49% from its March 2000 peak. The Fed cut its policy rate to 1.25% in November.
- The Department of Homeland Security is created Signed in November, the law merged 22 federal agencies into one department, the largest reorganization of the federal government since 1947.
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.