U.S. inflation · 1921–1981
$100 in 1921 has the same buying power as
$508
in 1981
| Cumulative price change | 407.8% |
|---|---|
| Average inflation rate | 2.75% per year |
| Converted amount ($100 base) | $508 |
| Price difference ($100 base) | $408 |
| CPI in 1921 | 17.9 |
| CPI in 1981 | 90.9 |
| Inflation in 1921 | -10.50% |
| Inflation in 1981 | 10.32% |
| $100 in 1921 → 1981 | $508 |
| $100 in 1981 → 1921 | $19.69 |
Between 1921 and 1981, the Consumer Price Index went from 17.9 to 90.9. Cumulatively, prices increased 407.8%, which works out to an average of 2.75% per year. Put differently, a dollar in 1921 bought what $0.20 buys in 1981.
| Amount in 1921 | Value in 1981 |
|---|---|
| $1.00 | $5.08 |
| $5.00 | $25.39 |
| $10.00 | $50.78 |
| $20.00 | $102 |
| $50.00 | $254 |
| $100 | $508 |
| $500 | $2,539 |
| $1,000 | $5,078 |
| $5,000 | $25,391 |
| $10,000 | $50,782 |
| $100,000 | $507,821 |
| $1,000,000 | $5,078,212 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1921 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1921 → |
|---|---|---|
| All items (CPI-U) | 2.75% | $508 |
| Food | 3.00% | $589 |
| Apparel | 1.77% | $287 |
Not shown because the BLS began these indexes after 1921: 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 1921 |
|---|---|---|---|
| 1921 | 17.9 | -10.5% | $100 |
| 1923 | 17.1 | 1.8% | $95.53 |
| 1925 | 17.5 | 2.3% | $97.77 |
| 1927 | 17.4 | -1.7% | $97.21 |
| 1929 | 17.1 | 0.0% | $95.53 |
| 1931 | 15.2 | -9.0% | $84.92 |
| 1933 | 13 | -5.1% | $72.63 |
| 1935 | 13.7 | 2.2% | $76.54 |
| 1937 | 14.4 | 3.6% | $80.45 |
| 1939 | 13.9 | -1.4% | $77.65 |
| 1941 | 14.7 | 5.0% | $82.12 |
| 1943 | 17.3 | 6.1% | $96.65 |
| 1945 | 18 | 2.3% | $101 |
| 1947 | 22.3 | 14.4% | $125 |
| 1949 | 23.8 | -1.2% | $133 |
| 1951 | 26 | 7.9% | $145 |
| 1953 | 26.7 | 0.8% | $149 |
| 1955 | 26.8 | -0.4% | $150 |
| 1957 | 28.1 | 3.3% | $157 |
| 1959 | 29.1 | 0.7% | $163 |
| 1961 | 29.9 | 1.0% | $167 |
| 1963 | 30.6 | 1.3% | $171 |
| 1965 | 31.5 | 1.6% | $176 |
| 1967 | 33.4 | 3.1% | $187 |
| 1969 | 36.7 | 5.5% | $205 |
| 1971 | 40.5 | 4.4% | $226 |
| 1973 | 44.4 | 6.2% | $248 |
| 1975 | 53.8 | 9.1% | $301 |
| 1977 | 60.6 | 6.5% | $339 |
| 1979 | 72.6 | 11.3% | $406 |
| 1981 | 90.9 | 10.3% | $508 |
Long periods are sampled every 2 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 1921 to 1981: $100 is worth $508 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1921-to-1981/
APA: InflationCalculator.com. Inflation from 1921 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1921-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.