An inflation calculator is a tool that uses historical Consumer Price Index (CPI) data to determine how the purchasing power of money changes over time due to inflation. It can compare the value of a dollar amount between different years by accounting for price changes in a basket of goods and services. Key points about inflation calculators:

• They typically use CPI data, which measures the average price change for a representative basket of goods and services over time.
• The basic formula involves adjusting an amount of money by the ratio of CPI values in two different years.
• Inflation calculators are used to understand how much an amount of money in the past is worth in today's dollars or vice versa.
• They can also project future inflation using average historical inflation rates.

Examples of inflation calculators are available for different countries and historical periods, such as the U.S., Canada, the U.K., and Australia. They help visualize cumulative inflation, inflation rates per year, and the changing buying power of money.

If needed, a specific inflation calculation or comparison between years can be done using one of these calculators.