U.S. inflation · 1922–1981
$100 in 1922 has the same buying power as
$541
in 1981
| Cumulative price change | 441.1% |
|---|---|
| Average inflation rate | 2.90% per year |
| Converted amount ($100 base) | $541 |
| Price difference ($100 base) | $441 |
| CPI in 1922 | 16.8 |
| CPI in 1981 | 90.9 |
| Inflation in 1922 | -6.15% |
| Inflation in 1981 | 10.32% |
| $100 in 1922 → 1981 | $541 |
| $100 in 1981 → 1922 | $18.48 |
Between 1922 and 1981, the Consumer Price Index went from 16.8 to 90.9. Cumulatively, prices increased 441.1%, which works out to an average of 2.90% per year. Put differently, a dollar in 1922 bought what $0.18 buys in 1981.
| Amount in 1922 | Value in 1981 |
|---|---|
| $1.00 | $5.41 |
| $5.00 | $27.05 |
| $10.00 | $54.11 |
| $20.00 | $108 |
| $50.00 | $271 |
| $100 | $541 |
| $500 | $2,705 |
| $1,000 | $5,411 |
| $5,000 | $27,054 |
| $10,000 | $54,107 |
| $100,000 | $541,071 |
| $1,000,000 | $5,410,714 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1922 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1922 → |
|---|---|---|
| All items (CPI-U) | 2.90% | $541 |
| Food | 3.16% | $628 |
| Apparel | 2.16% | $353 |
Not shown because the BLS began these indexes after 1922: 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 1922 |
|---|---|---|---|
| 1922 | 16.8 | -6.1% | $100 |
| 1924 | 17.1 | 0.0% | $102 |
| 1926 | 17.7 | 1.1% | $105 |
| 1928 | 17.1 | -1.7% | $102 |
| 1930 | 16.7 | -2.3% | $99.40 |
| 1932 | 13.7 | -9.9% | $81.55 |
| 1934 | 13.4 | 3.1% | $79.76 |
| 1936 | 13.9 | 1.5% | $82.74 |
| 1938 | 14.1 | -2.1% | $83.93 |
| 1940 | 14 | 0.7% | $83.33 |
| 1942 | 16.3 | 10.9% | $97.02 |
| 1944 | 17.6 | 1.7% | $105 |
| 1946 | 19.5 | 8.3% | $116 |
| 1948 | 24.1 | 8.1% | $143 |
| 1950 | 24.1 | 1.3% | $143 |
| 1952 | 26.5 | 1.9% | $158 |
| 1954 | 26.9 | 0.7% | $160 |
| 1956 | 27.2 | 1.5% | $162 |
| 1958 | 28.9 | 2.8% | $172 |
| 1960 | 29.6 | 1.7% | $176 |
| 1962 | 30.2 | 1.0% | $180 |
| 1964 | 31 | 1.3% | $185 |
| 1966 | 32.4 | 2.9% | $193 |
| 1968 | 34.8 | 4.2% | $207 |
| 1970 | 38.8 | 5.7% | $231 |
| 1972 | 41.8 | 3.2% | $249 |
| 1974 | 49.3 | 11.0% | $293 |
| 1976 | 56.9 | 5.8% | $339 |
| 1978 | 65.2 | 7.6% | $388 |
| 1980 | 82.4 | 13.5% | $490 |
| 1981 | 90.9 | 10.3% | $541 |
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 1922 to 1981: $100 is worth $541 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1922-to-1981/
APA: InflationCalculator.com. Inflation from 1922 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1922-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.