U.S. inflation · 1916–1981
$100 in 1916 has the same buying power as
$834
in 1981
| Cumulative price change | 733.9% |
|---|---|
| Average inflation rate | 3.32% per year |
| Converted amount ($100 base) | $834 |
| Price difference ($100 base) | $734 |
| CPI in 1916 | 10.9 |
| CPI in 1981 | 90.9 |
| Inflation in 1916 | 7.92% |
| Inflation in 1981 | 10.32% |
| $100 in 1916 → 1981 | $834 |
| $100 in 1981 → 1916 | $11.99 |
Between 1916 and 1981, the Consumer Price Index went from 10.9 to 90.9. Cumulatively, prices increased 733.9%, which works out to an average of 3.32% per year. Put differently, a dollar in 1916 bought what $0.12 buys in 1981.
| Amount in 1916 | Value in 1981 |
|---|---|
| $1.00 | $8.34 |
| $5.00 | $41.70 |
| $10.00 | $83.39 |
| $20.00 | $167 |
| $50.00 | $417 |
| $100 | $834 |
| $500 | $4,170 |
| $1,000 | $8,339 |
| $5,000 | $41,697 |
| $10,000 | $83,394 |
| $100,000 | $833,945 |
| $1,000,000 | $8,339,450 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1916 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1916 → |
|---|---|---|
| All items (CPI-U) | 3.32% | $834 |
| Food | 3.31% | $828 |
| Apparel | 2.71% | $567 |
Not shown because the BLS began these indexes after 1916: core (all items less food & energy) (1957–), energy (1957–), housing (1967–), medical care (1935–), transportation (1935–), recreation (1993–), education & communication (1993–).
| Year | CPI | Inflation rate | $100 from 1916 |
|---|---|---|---|
| 1916 | 10.9 | 7.9% | $100 |
| 1921 | 17.9 | -10.5% | $164 |
| 1926 | 17.7 | 1.1% | $162 |
| 1931 | 15.2 | -9.0% | $139 |
| 1936 | 13.9 | 1.5% | $128 |
| 1941 | 14.7 | 5.0% | $135 |
| 1946 | 19.5 | 8.3% | $179 |
| 1951 | 26 | 7.9% | $239 |
| 1956 | 27.2 | 1.5% | $250 |
| 1961 | 29.9 | 1.0% | $274 |
| 1966 | 32.4 | 2.9% | $297 |
| 1971 | 40.5 | 4.4% | $372 |
| 1976 | 56.9 | 5.8% | $522 |
| 1981 | 90.9 | 10.3% | $834 |
Long periods are sampled every 5 years; the calculator above covers any pair of years.
1981 was the year the inflation fever finally broke, at an extraordinary price. Consumer prices rose 10.3%, the second year of back-to-back double-digit inflation and the last time the U.S. would see one. To end it, Paul Volcker’s Federal Reserve drove its policy rate above 19% and let borrowing costs go where they may: a 30-year mortgage cost more than 18% by autumn, car loans and business credit froze, and homebuilders mailed the Fed two-by-fours in protest. The squeeze tipped the economy into recession in July, the deep 1981–82 downturn that would push unemployment past 10%. But it worked. Inflation fell by nearly half within a year and to under 4% by 1983, the disinflation that defined the following two decades. Even the price of mailing a letter told the year’s story: postage went up twice in eight months.
MLA: “Inflation from 1916 to 1981: $100 is worth $834 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1916-to-1981/
APA: InflationCalculator.com. Inflation from 1916 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1916-to-1981/
Source: U.S. Bureau of Labor Statistics, CPI-U annual averages (series CUUR0000SA0; category indexes listed on the data sources page). See how these numbers are calculated.