Inflation / Consumer Price Index
"Inflation" is a monetary phenomenon due to expansion of the money supply.
The Consumer Price Index (CPI) is more commonly used to estimate cost changes, salary adjustments, etc. The CPI is the ratio of the cost of a bundle of goods presumed to represent the annual expenditures of a family to the cost of the same goods in some prior or "base year". Using the CPI for a starting year and the CPI for an ending year the percentage change is an estimate of the increase:
PercentChange = 100 * ( CPIYear2 / CPIYear1 - 1 )))
California Department of Finance - Price Data / CPI|
US and California Consumer Price Index |
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|
Year |
USA Index |
USA % |
CA index |
CA % |
|
2000 |
172.2 |
3.4 |
174.8 |
3.7 |
|
2001 |
177.1 |
2.8 |
181.7 |
3.9 |
|
2002 |
179.9 |
1.6 |
186.1 |
2.4 |
|
2003 |
184.0 |
2.3 |
190.4 |
2.3 |
|
2004 |
188.9 |
2.7 |
195.3 |
2.6 |
|
2005 |
195.3 |
3.4 |
202.6 |
3.7 |
|
2006 |
201.9 |
3.2 |
210.3 |
3.6 |
| Total 2000-2006 | 17.25 | 20.31 | ||
- USA 17.25% (1.1725 = 201.9/172.2)
- CA 20.31% (1.2031 = 210.3/174.8)
The US increase agrees with other US data on the Internet.