U.S. inflation · 1920–1981
$100 in 1920 has the same buying power as
$455
in 1981
| Cumulative price change | 354.5% |
|---|---|
| Average inflation rate | 2.51% per year |
| Converted amount ($100 base) | $455 |
| Price difference ($100 base) | $355 |
| CPI in 1920 | 20 |
| CPI in 1981 | 90.9 |
| Inflation in 1920 | 15.61% |
| Inflation in 1981 | 10.32% |
| $100 in 1920 → 1981 | $455 |
| $100 in 1981 → 1920 | $22.00 |
Between 1920 and 1981, the Consumer Price Index went from 20 to 90.9. Cumulatively, prices increased 354.5%, which works out to an average of 2.51% per year. Put differently, a dollar in 1920 bought what $0.22 buys in 1981.
| Amount in 1920 | Value in 1981 |
|---|---|
| $1.00 | $4.55 |
| $5.00 | $22.73 |
| $10.00 | $45.45 |
| $20.00 | $90.90 |
| $50.00 | $227 |
| $100 | $455 |
| $500 | $2,273 |
| $1,000 | $4,545 |
| $5,000 | $22,725 |
| $10,000 | $45,450 |
| $100,000 | $454,500 |
| $1,000,000 | $4,545,000 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1920 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1920 → |
|---|---|---|
| All items (CPI-U) | 2.51% | $455 |
| Food | 2.48% | $446 |
| Apparel | 1.31% | $221 |
Not shown because the BLS began these indexes after 1920: 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 1920 |
|---|---|---|---|
| 1920 | 20 | 15.6% | $100 |
| 1925 | 17.5 | 2.3% | $87.50 |
| 1930 | 16.7 | -2.3% | $83.50 |
| 1935 | 13.7 | 2.2% | $68.50 |
| 1940 | 14 | 0.7% | $70.00 |
| 1945 | 18 | 2.3% | $90.00 |
| 1950 | 24.1 | 1.3% | $121 |
| 1955 | 26.8 | -0.4% | $134 |
| 1960 | 29.6 | 1.7% | $148 |
| 1965 | 31.5 | 1.6% | $158 |
| 1970 | 38.8 | 5.7% | $194 |
| 1975 | 53.8 | 9.1% | $269 |
| 1980 | 82.4 | 13.5% | $412 |
| 1981 | 90.9 | 10.3% | $455 |
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 1920 to 1981: $100 is worth $455 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1920-to-1981/
APA: InflationCalculator.com. Inflation from 1920 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1920-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.