Note: This article is being updated. For the officially published article, go to: PEREZGONZALEZ Jose D (2013). Referential USD based on CPI-U (2013e)6. Knowledge (ISSN 2324-1624), 2014, pages 20-23.] [DOI] [Printer friendly] |
Referential USD
Referential US dollars (rUSD, r$) is the real value of the US dollar (USD, $) back in 2010, which is used here as referential currency for better understanding the value of money overtime. The referential dollar is based on the average value of the United States consumer price index for all urban consumers - US CPI-U Average (United States Bureau of Labor Statistics, 20143, also Rate Inflation, 20142). The CPI-U is a useful index for comparing the cost of consumer goods and services (Williamson, 20115), and represents well the consumer patterns of about 80% of the U.S. population (excluding rural consumers, the military and institutional populations - Wikipedia, 20114). It is calculated by updating the nominal value of the dollar with the appropriate multiplier. The formula for transforming USD into rUSD follows, while Table 1 provides the correct multiplier (an inflator/deflator multiplier) for the formula.
Formulas | |
---|---|
rUSD = nominal USD * value multiplier | = value of money throughout time, with base 2010 (= 218.1/CPI) |
currency equivalence = nominal USD * currency multiplier | = equivalent currency throughout time, with base 2010 (= CPI/218.1) |
Table 1. CPI-U for USA and rUSD multipliers | |||||
---|---|---|---|---|---|
Year | CPI A.Avg | Base 2010 | value multiplier | currency multiplier | |
1913 | 9.9 | 218.1 | 22.0258 | 0.0454 | |
1914 | 10.0 | 218.1 | 21.8055 | 0.0459 | |
1915 | 10.1 | 218.1 | 21.5896 | 0.0463 | |
1916 | 10.9 | 218.1 | 20.0050 | 0.0500 | |
1917 | 12.8 | 218.1 | 17.0355 | 0.0587 | |
1918 | 15.1 | 218.1 | 14.4407 | 0.0692 | |
1919 | 17.3 | 218.1 | 12.6043 | 0.0793 | |
1920 | 20.0 | 218.1 | 10.9028 | 0.0917 | |
1921 | 17.9 | 218.1 | 12.1818 | 0.0821 | |
1922 | 16.8 | 218.1 | 12.9795 | 0.0770 | |
1923 | 17.1 | 218.1 | 12.7518 | 0.0784 | |
1924 | 17.1 | 218.1 | 12.7518 | 0.0784 | |
1925 | 17.5 | 218.1 | 12.4603 | 0.0803 | |
1926 | 17.7 | 218.1 | 12.3195 | 0.0812 | |
1927 | 17.4 | 218.1 | 12.5319 | 0.0798 | |
1928 | 17.1 | 218.1 | 12.7518 | 0.0784 | |
1929 | 17.1 | 218.1 | 12.7518 | 0.0784 | |
1930 | 16.7 | 218.1 | 13.0572 | 0.0766 | |
1931 | 15.2 | 218.1 | 14.3457 | 0.0697 | |
1932 | 13.7 | 218.1 | 15.9164 | 0.0628 | |
1933 | 13.0 | 218.1 | 16.7735 | 0.0596 | |
1934 | 13.4 | 218.1 | 16.2728 | 0.0615 | |
1935 | 13.7 | 218.1 | 15.9164 | 0.0628 | |
1936 | 13.9 | 218.1 | 15.6874 | 0.0637 | |
1937 | 14.4 | 218.1 | 15.1427 | 0.0660 | |
1938 | 14.1 | 218.1 | 15.4649 | 0.0647 | |
1939 | 13.9 | 218.1 | 15.6874 | 0.0637 | |
1940 | 14.0 | 218.1 | 15.5754 | 0.0642 | |
1941 | 14.7 | 218.1 | 14.8337 | 0.0674 | |
1942 | 16.3 | 218.1 | 13.3776 | 0.0748 | |
1943 | 17.3 | 218.1 | 12.6043 | 0.0793 | |
1944 | 17.6 | 218.1 | 12.3895 | 0.0807 | |
1945 | 18.0 | 218.1 | 12.1142 | 0.0825 | |
1946 | 19.5 | 218.1 | 11.1823 | 0.0894 | |
1947 | 22.3 | 218.1 | 9.7783 | 0.1023 | |
1948 | 24.1 | 218.1 | 9.0479 | 0.1105 | |
1949 | 23.8 | 218.1 | 9.1620 | 0.1091 | |
1950 | 24.1 | 218.1 | 9.0479 | 0.1105 | |
1951 | 26.0 | 218.1 | 8.3867 | 0.1192 | |
1952 | 26.5 | 218.1 | 8.2285 | 0.1215 | |
1953 | 26.7 | 218.1 | 8.1669 | 0.1224 | |
1954 | 26.9 | 218.1 | 8.1061 | 0.1234 | |
1955 | 26.8 | 218.1 | 8.1364 | 0.1229 | |
1956 | 27.2 | 218.1 | 8.0167 | 0.1247 | |
1957 | 28.1 | 218.1 | 7.7600 | 0.1289 | |
1958 | 28.9 | 218.1 | 7.5452 | 0.1325 | |
1959 | 29.1 | 218.1 | 7.4933 | 0.1335 | |
1960 | 29.6 | 218.1 | 7.3667 | 0.1357 | |
1961 | 29.9 | 218.1 | 7.2928 | 0.1371 | |
1962 | 30.2 | 218.1 | 7.2204 | 0.1385 | |
1963 | 30.6 | 218.1 | 7.1260 | 0.1403 | |
1964 | 31.0 | 218.1 | 7.0340 | 0.1422 | |
1965 | 31.5 | 218.1 | 6.9224 | 0.1445 | |
1966 | 32.4 | 218.1 | 6.7301 | 0.1486 | |
1967 | 33.4 | 218.1 | 6.5286 | 0.1532 | |
1968 | 34.8 | 218.1 | 6.2659 | 0.1596 | |
1969 | 36.7 | 218.1 | 5.9416 | 0.1683 | |
1970 | 38.8 | 218.1 | 5.6200 | 0.1779 | |
1971 | 40.5 | 218.1 | 5.3841 | 0.1857 | |
1972 | 41.8 | 218.1 | 5.2166 | 0.1917 | |
1973 | 44.4 | 218.1 | 4.9111 | 0.2036 | |
1974 | 49.3 | 218.1 | 4.4230 | 0.2261 | |
1975 | 53.8 | 218.1 | 4.0531 | 0.2467 | |
1976 | 56.9 | 218.1 | 3.8322 | 0.2609 | |
1977 | 60.6 | 218.1 | 3.5983 | 0.2779 | |
1978 | 65.2 | 218.1 | 3.3444 | 0.2990 | |
1979 | 72.6 | 218.1 | 3.0035 | 0.3329 | |
1980 | 82.4 | 218.1 | 2.6463 | 0.3779 | |
1981 | 90.9 | 218.1 | 2.3988 | 0.4169 | |
1982 | 96.5 | 218.1 | 2.2596 | 0.4425 | |
1983 | 99.6 | 218.1 | 2.1893 | 0.4568 | |
1984 | 103.9 | 218.1 | 2.0987 | 0.4765 | |
1985 | 107.6 | 218.1 | 2.0265 | 0.4935 | |
1986 | 109.6 | 218.1 | 1.9896 | 0.5026 | |
1987 | 113.6 | 218.1 | 1.9195 | 0.5210 | |
1988 | 118.3 | 218.1 | 1.8432 | 0.5425 | |
1989 | 124.0 | 218.1 | 1.7585 | 0.5687 | |
1990 | 130.7 | 218.1 | 1.6684 | 0.5994 | |
1991 | 136.2 | 218.1 | 1.6010 | 0.6246 | |
1992 | 140.3 | 218.1 | 1.5542 | 0.6434 | |
1993 | 144.5 | 218.1 | 1.5090 | 0.6627 | |
1994 | 148.2 | 218.1 | 1.4714 | 0.6796 | |
1995 | 152.4 | 218.1 | 1.4308 | 0.6989 | |
1996 | 156.9 | 218.1 | 1.3898 | 0.7195 | |
1997 | 160.5 | 218.1 | 1.3586 | 0.7361 | |
1998 | 163.0 | 218.1 | 1.3378 | 0.7475 | |
1999 | 166.6 | 218.1 | 1.3089 | 0.7640 | |
2000 | 172.2 | 218.1 | 1.2663 | 0.7897 | |
2001 | 177.1 | 218.1 | 1.2313 | 0.8122 | |
2002 | 179.9 | 218.1 | 1.2121 | 0.8250 | |
2003 | 184.0 | 218.1 | 1.1851 | 0.8438 | |
2004 | 188.9 | 218.1 | 1.1543 | 0.8663 | |
2005 | 195.3 | 218.1 | 1.1165 | 0.8956 | |
2006 | 201.6 | 218.1 | 1.0816 | 0.9245 | |
2007 | 207.3 | 218.1 | 1.0517 | 0.9509 | |
2008 | 215.3 | 218.1 | 1.0128 | 0.9874 | |
2009 | 214.5 | 218.1 | 1.0164 | 0.9839 | |
2010 | 218.1 | 218.1 | 1.0000 | 1.0000 | |
2011 | 224.9 | 218.1 | 0.9694 | 1.0316 | |
2012 | 229.6 | 218.1 | 0.9497 | 1.0529 | |
2013 | 233.0 | 218.1 | 0.9360 | 1.0683 | |
2014 | 236.7 | 218.1 | 0.9211 | 1.0857 | |
2015* | 243.8 | 218.1 | 0.8943 | 1.1182 | |
2016* | 251.2 | 218.1 | 0.8682 | 1.1518 | |
2017* | 258.7 | 218.1 | 0.8429 | 1.1863 | |
2018* | 266.4 | 218.1 | 0.8184 | 1.2219 | |
2019* | 274.4 | 218.1 | 0.7945 | 1.2586 | |
2020* | 282.7 | 218.1 | 0.7714 | 1.2963 | |
2021* | 291.2 | 218.1 | 0.7489 | 1.3352 | |
(*Assuming a 3% accumulated inflation rate.) |
For example, a salary of $10,000 back in 1972 had the same purchasing power (ie, value) than a salary of $52,166 in 2010 (= $10,000 * 5.2166). And a salary of $40,000 in 2014 had the same purchasing power than salary of $36,844 in 2010. Thus, a person earning $10,000 in 1972 was actually better off than a person earning $40,000 in 2014.
On the other hand, the currency equivalence of a purchasing power of r$40,000 in 2010 was $7,668 in 1972 ( = r$40,000 * 0.1917). That is, whatever was worth $40,000 in 2010 could have been bought with $7,668 back in 1972.
Did you understand?
Outdated versions
PEREZGONZALEZ Jose D (2010). Referential USD based on CPI-U (2010e). Journal of Knowledge Advancement & Integration (ISSN 1177-4576), 2011, pages 61-64.
PEREZGONZALEZ Jose D (2011). Referential USD based on CPI-U (2011e). Journal of Knowledge Advancement & Integration (ISSN 1177-4576), 2012, pages 117-120.
PEREZGONZALEZ Jose D (2012). Referential USD based on CPI-U (2012e). Knowledge (ISSN 2324-1624), 2013, pages 81-84, doi:10.6084/m9.figshare.706985
Author
Jose D PEREZGONZALEZ (2015). Massey University, Turitea Campus, Private Bag 11-222, Palmerston North 4442, New Zealand. (JDPerezgonzalez).
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