Version 1.0.0.0 (183 KB) by
Calculate the present value using the Bureau of Labor and Statistics' Consumer Price Index.
Updated 7 Aug 2012

INFLATION_ADJUST calculates the present value (in today's dollars) of purchases from years past using the Consumer Price Index (CPI) from the Bureau of Labor and Statistics (BLS) website. Note: It takes ~30 seconds! Valid only for dates after 1947!

INPUTS:
purchase_prices = the price (scalar or array) paid for an item.
purchase_dates = the date(s) corresponding to purchase price(s) in datenum format.

OUTPUT:
The present value in today's dollars of the purchase.

EXAMPLE 1: You paid \$125,000 for a house on Feb. 1, 1992:

ans =
206185.06

So that \$125k house in 1992 is roughly equivalent to paying \$206k today.

EXAMPLE 2: Create the plot at the top of this page, cost of a first-class postage stamp (also provided as an example m-file, inflation_stamp_example.m)

post_dates = datenum(postage_stamp(:,1),1,1);
post_rates = postage_stamp(:,2);

figure
imgh = imagesc([post_dates(1) post_dates(end)],[60 0],(rgb));
plot(post_dates,post_rates,'r','linewidth',2)
datetick
xlim([post_dates(1) post_dates(end)])
set(gca,'ydir','normal');
legend boxoff
box off
title('Price of a First Class Stamp')
xlabel('year')
ylabel('price in cents')

### Cite As

##### MATLAB Release Compatibility
Created with R2011a
Compatible with any release
##### Platform Compatibility
Windows macOS Linux
##### Categories
Find more on Financial Toolbox in Help Center and MATLAB Answers
##### Acknowledgements

Inspired by: Cost of Gas

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