Between 1925 and 1980, the Consumer Price Index went from 17.5 to 82.4.
Cumulatively, prices increased 370.9%, which works out to an average of
2.86% per year. Put differently, a dollar in 1925 bought what
$0.21 buys in 1980.
Common amounts: 1925 dollars in 1980
Amount in 1925
Value in 1980
$1.00
$4.71
$5.00
$23.54
$10.00
$47.09
$20.00
$94.17
$50.00
$235
$100
$471
$500
$2,354
$1,000
$4,709
$5,000
$23,543
$10,000
$47,086
$100,000
$470,857
$1,000,000
$4,708,571
Inflation by spending category, 1925–1980
The headline number is an average. Individual categories moved very differently over this
period. Here is what $100 of 1925 spending costs in 1980, by category:
Category
Avg. yearly inflation
$100 in 1925 →
All items (CPI-U)
2.86%
$471
Food
3.06%
$526
Apparel
2.28%
$346
Not shown because the BLS began these indexes after 1925: core (all items less food & energy) (1957–), energy (1957–), housing (1967–), medical care (1935–), transportation (1935–), recreation (1993–), education & communication (1993–).
Long periods are sampled every 2 years; the calculator above covers any pair of years.
The destination year: 1980
1980 sat at the very peak of the Great Inflation. Prices rose 13.5% in that
single year, mortgage rates were climbing toward 16%, and the Federal Reserve
under Paul Volcker was administering the painful interest-rate medicine that
would finally break the inflationary spiral, at the cost of the deep 1981–82
recession. No single year looms larger in how Americans think about inflation.
MLA: “Inflation from 1925 to 1980: $100 is worth $471 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1925-to-1980/
APA: InflationCalculator.com. Inflation from 1925 to 1980. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1925-to-1980/