Value of $100 in 1913, adjusted to 2010

What happened to prices between 1913 and 2010

Between 1913 and 2010, the Consumer Price Index went from 9.9 to 218.056. Cumulatively, prices increased 2102.6%, which works out to an average of 3.24% per year. Put differently, a dollar in 1913 bought what $0.05 buys in 2010: the 1913 dollar lost 95.5% of its purchasing power over these 97 years.

1913 is where this site’s price history begins, because it’s where the Bureau of Labor Statistics’ own consumer price data begins. The CPI wasn’t published in real time back then; the BLS built the earliest index retroactively from retail price records collected starting in 1913, which makes every dollar figure on this site ultimately anchored to that year’s prices. It was also the year the machinery of modern federal economic policy was built. The 16th Amendment, ratified in February, cleared the constitutional path for a federal income tax, and the Revenue Act that followed in October imposed a top rate of just 7% on income above $500,000, a narrow tax that would later be reshaped into the broad-based system that funds the government today. In December, Congress passed the Federal Reserve Act, creating the central bank that would eventually take on fighting inflation as one of its core jobs, including the 19%-plus interest rates it deployed against the 1970s and early 1980s price surge. Consumer life in 1913 was correspondingly simple by later standards: a first-class stamp cost 2 cents, a price that held from 1885 all the way to 1917, and the Ford Motor Company introduced the moving assembly line at its Highland Park plant that year, a manufacturing breakthrough that would spend the next decade driving down the cost of a car faster than prices elsewhere were rising.

More about inflation in 1913 →

The destination year: 2010

In 2010, prices rose 1.6% and $100 from 1913 had the buying power of $2,203; the year's average CPI of 218.056 is the level behind every 2010 figure on this page.

2010 was a year of recovery without much price pressure. The CPI rose 1.6%, a return to growth after 2009’s deflation, with gasoline averaging $2.78 a gallon as energy prices climbed back from their recession lows. Housing costs barely moved: millions of foreclosed and vacant homes kept rents soft, and the median new home sold for about $221,800. The federal minimum wage stayed at $7.25, the level set in July 2009, and a first-class stamp cost 44 cents.

The Federal Reserve was more worried about too little inflation than too much. Its policy rate sat at 0–0.25%, and in November it announced a further $600 billion of Treasury purchases to hold down long-term borrowing costs. Congress passed the Dodd-Frank Act in July to tighten financial regulation, while a 110 billion euro rescue of Greece in May showed that the crisis had moved from American mortgages to European government debt. For anyone comparing dollars across the decade, 2010 is a useful baseline: prices were still close to their 2008 levels, and the years ahead brought a slow, steady climb.

More about inflation in 2010 →