Finding Inflation Adjusted Prices
ISSUE 703 | MAR 2008
The Bureau of Labor Statistics has an inflation calculator tool on its site, www.bls.gov, where you can determine how high historic price points in the past equate to today’s dollars when adjusted for inflation. This year everyone is talking about inflation as the price of a number of commodities, including wheat, soybeans, crude oil and gold, have surged to new all-time highs. But if you run some of the numbers in inflation-adjusted terms, you might find more room for prices to head higher still. On the other hand, it looks like car prices and home prices are still overly inflated.
| Historical Price Peak | Recent Price | Inflation-Adjusted Price |
| Gold $850 oz. – 1980 | $1,000 | $2,177 |
| Crude oil $38 barrel – 1977 | $107 | $110.48 |
| Wheat $6.35 bushel – 1974 | $11.25 | $27.19 |
| Soybeans $12.90 bushel – 1973 | $13 | $61.33 |
| Retail gasoline $1.42 gallon (average) – 1981 | $3.28 | $3.30 |
| Average new car price $3,900 – 1970 | $28,715 | $21,278 |
| Median home price $23,400 – 1970 | $208,400 | $127,670 |
Sources: AAA data, thepeoplehistory.com, Auto Affordability Index, National Association of Realtors
Kristina Zurla Landgraf is editor of Lind eWire. She can be reached by email at editor@lind-waldock.com.
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