Average inflation rate explained

Nestfigure’s calculator multiplies a constant average rate each year. That makes examples easy to check—but real CPI history zigzags year to year.

Sample: $100.00 after 10 years

• 2% avg: $121.90 ( 21.9%)
• 3% avg: $134.39 ( 34.4%)
• 4% avg: $148.02 ( 48.0%)
• 5% avg: $162.89 ( 62.9%)

Open 3% sample

Official indexes

See bls.gov/cpi for published Consumer Price Index data.

Related

• Purchasing power guide
• Inflation calculator

Frequently asked questions

What does “average annual inflation rate” mean in this tool?

A single constant yearly percent you type so the math is transparent. Real years vary; Nestfigure does not load historical year-by-year CPI automatically.

Sources linked above include U.S. government materials (for example CFPB, FDIC, NCUA, BLS, IRS) where noted. Sample math uses only labeled Nestfigure assumptions—not bank quotes, job offers, or personalized advice. Last reviewed: August 9, 2026.