Cost of Living Definitely Went Up
If you get the feeling that things are getting more expensive every year, you’re really not imagining things. Each and every year, inflation rates go up just a tad. But when you take the last 100 years, the inflation rate is just scary. According to the Bureau of Labor Statistics, today’s prices (in 2019) are 1,186.04% higher than average prices in 1920!
The U.S. dollar went up an average rate of 2.61% per year. So, in 1920, a $100 bill would be the equivalent to about $1,286.04 today. Let that sink in for a moment. The inflation rate in the year 1920 was 15.61%. The current rate (from 2018 to 2019) was 2.05%. So things have pretty much calmed down, so to speak. $100 today will be equivalent to $102.05 next year.