$100 in 1920 is worth $1,008 in 2006,
because prices increased 908.0% over that period, an average of
2.72% a year.
$100 in 1920 has
the same buying power as
$1,008
in 2006
Detailed inflation statistics
Cumulative price change
908.0%
Average inflation rate
2.72% per year
Converted amount ($100 base)
$1,008
Price difference ($100 base)
$908
CPI in 1920
20
CPI in 2006
201.6
Inflation in 1920
15.61%
Inflation in 2006
3.23%
$100 in 1920 → 2006
$1,008
$100 in 2006 → 1920
$9.92
What happened to prices between 1920 and 2006
Between 1920 and 2006, the Consumer Price Index went from 20 to 201.6.
Cumulatively, prices increased 908.0%, which works out to an average of
2.72% per year. Put differently, a dollar in 1920 bought what
$0.10 buys in 2006: the 1920 dollar
lost 90.1% of its purchasing power over
these 86 years.
1920 was the last year of the inflation that had built since the war began:
consumer prices rose 15.6% for the year, leaving the CPI more than double its
1913 starting level after seven straight years of increases.
The boom behind those increases turned to bust before the year was over. The
Federal Reserve, worried about speculation, pushed its discount rate to a
record 7% that spring, and wholesale prices, which had led the wartime
runup, began collapsing within months. The National Bureau of Economic
Research dates the resulting downturn from January 1920 to July 1921, one of
the shortest but steepest contractions in U.S. history, and consumer prices
followed into outright decline, falling 10.5% in 1921. Two constitutional
changes reshaped the country that year, too. The 18th Amendment’s ban on
alcohol took legal effect January 17, enforced under the Volstead Act
Congress had passed the previous October. Then, on August 18, Tennessee’s
ratification of the 19th Amendment secured women’s right to vote nationwide,
and women cast ballots in a presidential election for the first time that
November, when Warren Harding won on a promise to return the country to
“normalcy” after a decade of war, pandemic, and rising prices. First-class
postage held at 2 cents, unchanged since mid-1919.
Every 1920 amount converts to 2006 at the same ratio, 10.08: $1,000 becomes
$10,080, and $10,000 becomes $100,800.
Amount in 1920
Value in 2006
$1.00
$10.08
$5.00
$50.40
$10.00
$101
$20.00
$202
$50.00
$504
$100
$1,008
$500
$5,040
$1,000
$10,080
$5,000
$50,400
$10,000
$100,800
$100,000
$1,008,000
$1,000,000
$10,080,000
Inflation by spending category, 1920–2006
Between 1920 and 2006, food rose the most, up 829.5%, while apparel rose the least, up 177.3%, against 908.0% for all items. The headline number is an average; here is what $100 of 1920
spending costs in 2006, by category:
Category
Avg. yearly inflation
$100 in 1920 →
All items (CPI-U)
2.72%
$1,008
Food
2.63%
$930
Apparel
1.19%
$277
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–).
Decade by decade: 1920 to 2006
Prices climbed fastest in the 1970s, averaging 7.82% a year, and fell in the 1920s (1.8% a year). Each step below chains into the full 1920–2006 change:
Years
Avg. yearly inflation
Price change
$100 from 1920, at end
1920–1930
-1.79%
-16.5%
$83.50
1930–1940
-1.75%
-16.2%
$70.00
1940–1950
5.58%
72.1%
$121
1950–1960
2.08%
22.8%
$148
1960–1970
2.74%
31.1%
$194
1970–1980
7.82%
112.4%
$412
1980–1990
4.72%
58.6%
$653
1990–2000
2.80%
31.8%
$861
2000–2006
2.66%
17.1%
$1,008
Year by year: CPI and the value of $100 from 1920
$100 from 1920 had already become $158 by
1965, on its way to $1,008 in 2006; each row shows the CPI, that
year's inflation rate, and the running value.
Within the span, inflation peaked at 14.4% in 1947, and prices fell 10.5% in 1921, the deepest deflation of the period.
Long periods are sampled every 5 years; the calculator above covers any pair of years.
The destination year: 2006
In 2006, prices rose 3.2% and $100 from 1920 had the buying
power of $1,008; the year's average CPI of 201.6 is the level
behind every 2006 figure on this page.
Inflation was 3.2% in 2006 and gasoline averaged $2.59 a gallon, up 29 cents from 2005. The
median household earned about $48,200 and the median new home cost $246,500, a gain of about
2% after a 13% jump in 2004 and 9% in 2005. National home prices, by the S&P/Case-Shiller
index, peaked in mid-2006. Ben Bernanke replaced Alan Greenspan as Federal Reserve chair on
February 1, and on June 29 the Fed raised its policy rate to 5.25%, the last of 17 straight
quarter-point increases. It held there for over a year. A first-class stamp rose to 39 cents in
January, and the federal minimum wage was $5.15 for the ninth full year in a row.
MLA: “Inflation from 1920 to 2006: $100 is worth $1,008 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1920-to-2006/
APA: InflationCalculator.com. Inflation from 1920 to 2006. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1920-to-2006/