Adjusting to 2019 dollars


I have pooled multiple single-year ACS files and want to adjust household income, and other income variables, to 2019 dollars. Given that my final dataset consists of pooled single year files, how can I go about adjusting to 2019 dollars? Do I have to divide the cpi multiplier? Any advice is greatly appreciated!

In general to convert from Year X dollars to Year Y dollars, you multiply the Year X dollars by:

CPI (year Y) / CPI (year X)

So for 2017 the annual average CPI-U value (from BLS) is 245.120. For 2019 it is 255.657. To convert 2017 dollars to 2019 dollars, multiply the income amount by 255.657/245.120 = 1.043.

A simple way to do this is to use the variable CPI99 to convert all dollars values to 1999 dollars. Then multiply them all by CPI (2019) / CPI (1999) to convert to 2019 dollars. More info on inflation adjustments in the CPS can be found here - this page is for IPUMS USA, but the variable CPI99 is the same for IPUMS CPS.