How much value does a dollar lose each year?

Could you elaborate on the concept of currency depreciation and how it affects the value of a dollar annually? Are there any specific factors that contribute to this decrease in value, such as inflation or economic policies? Is there a way to measure the exact amount of depreciation a dollar experiences in a given year, and if so, what methods are typically employed to make such calculations? Understanding the intricacies of this process can help individuals and businesses make more informed financial decisions.