Even though inflation has been very low in the wake of the Great Recession, and with oil prices so low that some analysts think we might see headline deflation in 2015, taking a longer term view shows how the value of a dollar has dropped over the last century and a half.
This chart, compiled by the blog Advisor Perspectives using a combination of official Bureau of Labour Statistics Consumer Price Index data since 1913, and historical data taken from Robert Shiller’s website, shows that the purchasing power of $US1.00 in 1872 has dropped to $US0.05 today:
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