The average inflation rate is best seen in the increase of postage stamps. In 1950 the first class stamp was $0.03, and will soon be $0.74 by July 2024.

That  comes out to 4.4% average inflation rate for the last 74 years

Forward Flat Rate Inflation Calculator

Calculates an inflation based on a certain average inflation rate after some years.

The Grand Illusion

Result

$0.03 now equals $0.72604 after 74 years in purchasing power with an average inflation rate of 4.4%.

with inflation rate after years =?

This is a calculation of the housing inflation rate in southern California from 1973 to 2024, based on personal data.

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Backward Flat Rate Inflation Calculator

Calculates the equivalent purchasing power of an amount some years ago based on a certain average inflation rate.

Result

$700,000 now equals $26,093.68 of purchasing power 50 years ago with an average inflation rate of 6.8%.

with inflation rate =?years ago

The inflation rate for the last 50 years depends on the type of commodity (food, housing, drugs, gas) and location.
From postage stamps to housing in Southern California, the average rate has been 5.6%.
Keep your cash in a treasury fund at 5.2% and if Fed rates don’t change, your money keeps pace…almost. 
But that ‘s not the whole story, because federal taxes take back 14 to 35% of that depending on income level.

Right now, if I sold my house for $700k, the Feds and CA would tax me 34%, to catch up with its inflation tax.
Nice of them, huh? Giving then taking away? Truth is, I’ve barely kept pace with inflation, until my selling. 

Pity those who have not owned a house to keep pace. It’s a rigged game so that nobody wins except the Feds.

So when Powell divines 3.3% CPI, don’t believe it. The government has to lie to keep in power.
Otherwise we’d grab our red hot pitchforks and drive those entrenched bureaucratic bastards out of office.

For old timers, the psychological impact is significant. I had to pay $327 for an ignition switch on my car, my 25 year old Honda that back when I bought it in 1999 would have cost $84, figuring a 5.6% rate of inflation. When I was 15 years old, 67 years ago, a foot long submarine sandwich cost about $0.20, though now it costs $7.00.

To stay halfway sane, I have to divide my current purchases by a factor of 28 to adjust for when I was 15 years old. Teenagers today haven’t a clue how our sneaky government is taxing us bullfrogs to death in slowly heated water to a boil. Fully inform them — maybe, just maybe, they’ll vote to change things for the better. Don’t hold your breath, though.

https://www.theepochtimes.com/us/usps-to-raise-postage-stamp-prices-by-7-8-percent-beginning-july-14-post-5682687?utm_source=Goodevening&src_src=Goodevening&utm_campaign=gv-2024-07-09&src_cmp=gv-2024-07-09&utm_medium=email&est=AAAAAAAAAAAAAAAAc%2B8vcB8AxtPO7b0BnmJUCr12hUABKvq%2FnMNa%2FevlMS5CjLResR8%3D