U.S. inflation · 1917–1981
$100 in 1917 has the same buying power as
$710
in 1981
| Cumulative price change | 610.2% |
|---|---|
| Average inflation rate | 3.11% per year |
| Converted amount ($100 base) | $710 |
| Price difference ($100 base) | $610 |
| CPI in 1917 | 12.8 |
| CPI in 1981 | 90.9 |
| Inflation in 1917 | 17.43% |
| Inflation in 1981 | 10.32% |
| $100 in 1917 → 1981 | $710 |
| $100 in 1981 → 1917 | $14.08 |
Between 1917 and 1981, the Consumer Price Index went from 12.8 to 90.9. Cumulatively, prices increased 610.2%, which works out to an average of 3.11% per year. Put differently, a dollar in 1917 bought what $0.14 buys in 1981.
| Amount in 1917 | Value in 1981 |
|---|---|
| $1.00 | $7.10 |
| $5.00 | $35.51 |
| $10.00 | $71.02 |
| $20.00 | $142 |
| $50.00 | $355 |
| $100 | $710 |
| $500 | $3,551 |
| $1,000 | $7,102 |
| $5,000 | $35,508 |
| $10,000 | $71,016 |
| $100,000 | $710,156 |
| $1,000,000 | $7,101,563 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1917 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1917 → |
|---|---|---|
| All items (CPI-U) | 3.11% | $710 |
| Food | 2.96% | $646 |
| Apparel | 2.45% | $472 |
Not shown because the BLS began these indexes after 1917: 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 1917 |
|---|---|---|---|
| 1917 | 12.8 | 17.4% | $100 |
| 1922 | 16.8 | -6.1% | $131 |
| 1927 | 17.4 | -1.7% | $136 |
| 1932 | 13.7 | -9.9% | $107 |
| 1937 | 14.4 | 3.6% | $113 |
| 1942 | 16.3 | 10.9% | $127 |
| 1947 | 22.3 | 14.4% | $174 |
| 1952 | 26.5 | 1.9% | $207 |
| 1957 | 28.1 | 3.3% | $220 |
| 1962 | 30.2 | 1.0% | $236 |
| 1967 | 33.4 | 3.1% | $261 |
| 1972 | 41.8 | 3.2% | $327 |
| 1977 | 60.6 | 6.5% | $473 |
| 1981 | 90.9 | 10.3% | $710 |
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 1917 to 1981: $100 is worth $710 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1917-to-1981/
APA: InflationCalculator.com. Inflation from 1917 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1917-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.