U.S. inflation · 1925–1986

Value of $100 in 1925, adjusted to 1986

$100 in 1925 is worth $626 in 1986, because prices increased 526.3% over that period, an average of 3.05% a year.

$100 in 1925 has the same buying power as

$626

in 1986

$74$350$62619251940195619711986$100 · 1925$626 · 1986
Detailed inflation statistics
Cumulative price change526.3%
Average inflation rate3.05% per year
Converted amount ($100 base)$626
Price difference ($100 base)$526
CPI in 192517.5
CPI in 1986109.6
Inflation in 19252.34%
Inflation in 19861.86%
$100 in 1925 → 1986$626
$100 in 1986 → 1925$15.97

What happened to prices between 1925 and 1986

Between 1925 and 1986, the Consumer Price Index went from 17.5 to 109.6. Cumulatively, prices increased 526.3%, which works out to an average of 3.05% per year. Put differently, a dollar in 1925 bought what $0.16 buys in 1986: the 1925 dollar lost 84.0% of its purchasing power over these 61 years.

Consumer prices rose 2.3% in 1925, the CPI’s largest single-year increase since the deflationary swings of the early 1920s, though still mild next to the double-digit inflation of the World War I years. The country’s cultural fault lines were on full display that summer in Dayton, Tennessee, where high school teacher John Scopes was tried July 10-21 for violating a state law against teaching evolution, a case that drew national press coverage and pitted prosecutor William Jennings Bryan against defense attorney Clarence Darrow. Real estate speculation, meanwhile, peaked in Florida, where buyers flipped undeveloped land in the Miami area on thin down payments, driving prices far above what the land itself could support; the bubble would collapse the following year. Detroit reshuffled that June too: Walter Chrysler reorganized the struggling Maxwell Motor Company into Chrysler Corporation, the start of what would become one of the American auto industry’s “Big Three.” First-class postage held at 2 cents for the sixth straight year.

More about inflation in 1925 →

Common amounts: 1925 dollars in 1986

Every 1925 amount converts to 1986 at the same ratio, 6.26: $1,000 becomes $6,263, and $10,000 becomes $62,629.

Amount in 1925Value in 1986
$1.00$6.26
$5.00$31.31
$10.00$62.63
$20.00$125
$50.00$313
$100$626
$500$3,131
$1,000$6,263
$5,000$31,314
$10,000$62,629
$100,000$626,286
$1,000,000$6,262,857

Inflation by spending category, 1925–1986

Between 1925 and 1986, food rose the most, up 560.6%, while apparel rose the least, up 302.7%, against 526.3% for all items. The headline number is an average; here is what $100 of 1925 spending costs in 1986, by category:

Category Avg. yearly inflation $100 in 1925 →
All items (CPI-U) 3.05% $626
Food 3.14% $661
Apparel 2.31% $403

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–).

Decade by decade: 1925 to 1986

Prices climbed fastest in the 1970s, averaging 7.82% a year, and fell in the 1930s (1.7% a year). Each step below chains into the full 1925–1986 change:

Years Avg. yearly inflation Price change $100 from 1925, at end
1925–1930 -0.93% -4.6% $95.43
1930–1940 -1.75% -16.2% $80.00
1940–1950 5.58% 72.1% $138
1950–1960 2.08% 22.8% $169
1960–1970 2.74% 31.1% $222
1970–1980 7.82% 112.4% $471
1980–1986 4.87% 33.0% $626

Year by year: CPI and the value of $100 from 1925

$100 from 1925 had already become $153 by 1955, on its way to $626 in 1986; 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 9.9% in 1932, the deepest deflation of the period.

Year CPI Inflation rate $100 from 1925
1925 17.5 2.3% $100
1930 16.7 -2.3% $95.43
1935 13.7 2.2% $78.29
1940 14 0.7% $80.00
1945 18 2.3% $103
1950 24.1 1.3% $138
1955 26.8 -0.4% $153
1960 29.6 1.7% $169
1965 31.5 1.6% $180
1970 38.8 5.7% $222
1975 53.8 9.1% $307
1980 82.4 13.5% $471
1985 107.6 3.6% $615
1986 109.6 1.9% $626

Long periods are sampled every 5 years; the calculator above covers any pair of years.

The destination year: 1986

In 1986, prices rose 1.9% and $100 from 1925 had the buying power of $626; the year's average CPI of 109.6 is the level behind every 1986 figure on this page.

1986 delivered the decade’s biggest one-year drop in inflation, and it came almost entirely from a single source: oil. Saudi Arabia abandoned its policy of restraining output to prop up prices, and world crude collapsed from about $27 a barrel to under $10 by midyear. Gasoline, which had averaged $1.12 a gallon in 1985, fell to 86 cents. With energy costs plunging, headline CPI inflation for the year came in at just 1.9%, the lowest annual rate since 1965 and a striking bookend to 1980’s 13.5% peak. The relief was uneven: prices for most goods and services outside energy kept rising at a moderate pace, so households that didn’t drive much or heat with oil felt less of the difference. In October, Congress passed the Tax Reform Act of 1986, a bipartisan overhaul that cut the top individual income tax rate from 50% to 28% while closing many deductions and shelters, the broadest rewrite of the federal tax code since World War II. Between cheap gas and falling interest rates, 1986 read like proof that the inflationary 1970s were a closed chapter, six years after the U.S. economy had felt anything but calm.

More about inflation in 1986 →

Cite this page

MLA: “Inflation from 1925 to 1986: $100 is worth $626 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1925-to-1986/

APA: InflationCalculator.com. Inflation from 1925 to 1986. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1925-to-1986/

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.