US Inflation from 1990 to 2005
US inflation from 1990 to 2005 was +49.4%. $100 in 1990 had the same purchasing power as $149.43 in 2005 (avg. +2.71%/yr).
$100.00 in 1990 is worth
$149.43
in 2005
+49.4%
+2.71%/yr
How prices changed from 1990 to 2005
| Item | 1990 | 2005 | Change |
|---|---|---|---|
| Gallon of gas | $1.16 | $2.30 | +98% |
| Loaf of bread | $0.70 | $1.10 | +57% |
| New home (median) | $122,900 | $240,900 | +96% |
| Median household income | $35,353 | $46,326 | +31% |
| Movie ticket | $4.23 | $6.41 | +52% |
| Annual college tuition (public) | $1,908 | $5,492 | +188% |
What Drove Inflation from 1990 to 2005
The 1990s were a decade of remarkable price stability. Low inflation, budget surpluses, and the longest peacetime expansion on record defined the era. Globalization kept goods prices low as imports from China and other emerging markets grew. The technology boom raised productivity, further moderating price pressures. The Federal Reserve under Alan Greenspan maintained credibility through steady, data-driven monetary policy.
A mild recession in 1990–91 gave way to the longest US economic expansion on record, running through March 2001. Globalization, technology productivity gains, and Federal Reserve credibility kept inflation low and stable. The 2001 dot-com bust and 9/11 attacks caused a brief, shallow recession. The subsequent expansion was driven by housing and consumer credit, with inflation remaining tame as Chinese goods imports suppressed goods prices globally.
Understanding the Numbers
Over these 15 years, prices rose significantly — a total inflation rate of +49.4%. The annualized rate of +2.71% per year was roughly in line with the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 1990:
Ending in 2005: