US Inflation from 2002 to 2010
US inflation from 2002 to 2010 was +21.2%. $100 in 2002 had the same purchasing power as $121.21 in 2010 (avg. +2.43%/yr).
$100.00 in 2002 is worth
$121.21
in 2010
+21.2%
+2.43%/yr
How prices changed from 2002 to 2010
| Item | 2002 | 2010 | Change |
|---|---|---|---|
| Gallon of gas | $1.36 | $2.79 | +105% |
| Loaf of bread | $1.04 | $1.34 | +29% |
| New home (median) | $187,600 | $221,800 | +18% |
| Median household income | $42,409 | $49,276 | +16% |
| Movie ticket | $5.81 | $7.89 | +36% |
| Annual college tuition (public) | $4,081 | $7,605 | +86% |
What Drove Inflation from 2002 to 2010
Moderate Growth: 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.
Financial Crisis: The collapse of the US housing bubble triggered a global financial crisis of historic proportions. As mortgage-backed securities lost value and interbank lending froze, the Federal Reserve slashed rates to zero and deployed emergency lending facilities. The economy contracted sharply in 2008–09, and deflationary pressures emerged as credit collapsed and unemployment surged toward 10%. Massive fiscal stimulus and quantitative easing gradually stabilized conditions, but recovery was painfully slow.
Understanding the Numbers
Over these 8 years, prices rose modestly — a total inflation rate of +21.2%. The annualized rate of +2.43% per year was below the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 2002:
Ending in 2010: