Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

CPI doesnt stay flat, it compounds. #shorts

3 Feb 2026 · 1 min

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CPI compounds over time, eroding purchasing power more than the annual rate suggests. A hundred dollars in 2015 buys only about $78 worth of goods ten years later, a 22% loss that doesn't show up in nominal profits.

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This CPI that you see annually is actually like a compounding effect. So each year it's not like your price is still stagnant at 2.8%, but each year the erosion of your purchasing power is actually going down. And I'm just using their posted rate, but it's not really the same thing. So every $100 in 2015 now, 10 years later, buys about $78 worth of goods. I would roughly put the real is probably close to $70. So that's like a 22% pay cut you actually don't see on paper. If you think of it from the business, you've got a profit, and that profit may show $100, but the real purchasing power from that $100 is actually $78.