US Inflation from 1999 to 2005
US inflation from 1999 to 2005 was +17.2%. $100 in 1999 had the same purchasing power as $117.23 in 2005 (avg. +2.68%/yr).
$100.00 in 1999 is worth
$117.23
in 2005
+17.2%
+2.68%/yr
How prices changed from 1999 to 2005
| Item | 1999 | 2005 | Change |
|---|---|---|---|
| Gallon of gas | $1.17 | $2.30 | +97% |
| Loaf of bread | $0.87 | $1.10 | +26% |
| New home (median) | $161,000 | $240,900 | +50% |
| Median household income | $49,940 | $46,326 | −7% |
| Movie ticket | $5.08 | $6.41 | +26% |
| Annual college tuition (public) | $3,510 | $5,492 | +56% |
What Drove Inflation from 1999 to 2005
The 2000s were marked by the collapse of the dot-com bubble, the September 11 attacks, the Iraq War, and ultimately the worst financial crisis since the Great Depression. Inflation remained relatively contained for most of the decade despite rising housing and energy prices. The 2008 financial crisis produced a deflationary shock as credit collapsed, home values plummeted, and the global economy contracted sharply.
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 6 years, prices rose modestly — a total inflation rate of +17.2%. The annualized rate of +2.68% per year was roughly in line with the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 1999:
Ending in 2005: