Current Dollars

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August 25, 2024 3 min read Definitions

Current Dollars: Cost of an Asset in Terms of Today's Price Level

Economics Finance Accounting Inflation Consumer Price Index Asset Cost Price Level Current Dollars Purchasing Power

Current dollars refer to the measurement of the cost of an asset using today's price level, which reflects inflation adjustments. For instance, using the Consumer Price Index (CPI) as a basis, an asset that cost $20,000 when the CPI base was 100 would cost $36,000 in current dollars if today's CPI is 180.

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