U.S. inflation · 1918–1981
$100 in 1918 has the same buying power as
$602
in 1981
| Cumulative price change | 502.0% |
|---|---|
| Average inflation rate | 2.89% per year |
| Converted amount ($100 base) | $602 |
| Price difference ($100 base) | $502 |
| CPI in 1918 | 15.1 |
| CPI in 1981 | 90.9 |
| Inflation in 1918 | 17.97% |
| Inflation in 1981 | 10.32% |
| $100 in 1918 → 1981 | $602 |
| $100 in 1981 → 1918 | $16.61 |
Between 1918 and 1981, the Consumer Price Index went from 15.1 to 90.9. Cumulatively, prices increased 502.0%, which works out to an average of 2.89% per year. Put differently, a dollar in 1918 bought what $0.17 buys in 1981.
| Amount in 1918 | Value in 1981 |
|---|---|
| $1.00 | $6.02 |
| $5.00 | $30.10 |
| $10.00 | $60.20 |
| $20.00 | $120 |
| $50.00 | $301 |
| $100 | $602 |
| $500 | $3,010 |
| $1,000 | $6,020 |
| $5,000 | $30,099 |
| $10,000 | $60,199 |
| $100,000 | $601,987 |
| $1,000,000 | $6,019,868 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1918 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1918 → |
|---|---|---|
| All items (CPI-U) | 2.89% | $602 |
| Food | 2.77% | $560 |
| Apparel | 2.00% | $349 |
Not shown because the BLS began these indexes after 1918: 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 1918 |
|---|---|---|---|
| 1918 | 15.1 | 18.0% | $100 |
| 1923 | 17.1 | 1.8% | $113 |
| 1928 | 17.1 | -1.7% | $113 |
| 1933 | 13 | -5.1% | $86.09 |
| 1938 | 14.1 | -2.1% | $93.38 |
| 1943 | 17.3 | 6.1% | $115 |
| 1948 | 24.1 | 8.1% | $160 |
| 1953 | 26.7 | 0.8% | $177 |
| 1958 | 28.9 | 2.8% | $191 |
| 1963 | 30.6 | 1.3% | $203 |
| 1968 | 34.8 | 4.2% | $230 |
| 1973 | 44.4 | 6.2% | $294 |
| 1978 | 65.2 | 7.6% | $432 |
| 1981 | 90.9 | 10.3% | $602 |
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 1918 to 1981: $100 is worth $602 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1918-to-1981/
APA: InflationCalculator.com. Inflation from 1918 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1918-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.