Salary Time Machine ⏰
How Inflation Erodes Your Salary
A salary that felt generous in 2000 may actually be worth less in real terms today. The Consumer Price Index (CPI) measures the cost of a basket of goods and services over time. When prices rise faster than wages, your purchasing power decreases even if your nominal salary stays the same or increases slightly.
Between 2000 and 2026, cumulative US inflation has been approximately 90% — meaning something that cost $100 in 2000 costs about $190 today. A $60,000 salary in 2000 had the purchasing power of roughly $114,000 in 2026 dollars.
The Hidden Pay Cut
Many workers receive annual raises of 2–3% but inflation often runs at 3–8% during high-inflation periods (like 2021–2023). This means workers can receive raises every year and still be earning less in real terms. Use this tool to see if your salary has kept pace with inflation.