We can use a price index like the CPI to adjust values for inflation. Let's start with the scenario where we have a value from the past and we'd like to put it into current time. For example, a loaf of bread cost about $0.12 in 1950 and it costs much more today about $2.37 on average. But, this doesn't mean that we actually pay in real dollars almost $2.25 more... Remember that prices have risen from 1950 until now and so have our incomes...so to compare prices in the past to current values, we