In 2001, you paid a plumber $651 to install a new 40-gallon, gas hot water heater in a small building. Quickly, approximately how much will it cost you to replace the heater this year (2012)?

http://www.bls.gov/data/inflation_calculator.htm

Answer $844.77. That’s almost $200 more, eleven years later.

The CPI calculator is a handy tool to quickly convert historical dollars into today’s dollars. That’s helpful for budget preparation, financial discussions, and understanding why things feel more expensive.