Community and Government

What Is Inflation Rate? Learn How to Calculate the Inflation Rate

Written by MasterClass

Last updated: Oct 12, 2022 • 4 min read

When U.S. postage stamps were introduced in 1847, the price to deliver a letter was $0.05. Today, a letter costs $0.55 to mail. Why is this? A letter today weighs the same amount as the letters of 1847. And with advancements in shipping and mass transit, it’s less cost-intensive to send letters by truck and plane than it is via a lengthy horse ride. So why do today’s letters cost so much more? The reason is inflation.