U.S. inflation · 1925–1987

Value of $100 in 1925, adjusted to 1987

$100 in 1925 is worth $649 in 1987, because prices increased 549.1% over that period, an average of 3.06% a year.

$100 in 1925 has the same buying power as

$649

in 1987

$74$362$64919251941195619721987$100 · 1925$649 · 1987
Detailed inflation statistics
Cumulative price change549.1%
Average inflation rate3.06% per year
Converted amount ($100 base)$649
Price difference ($100 base)$549
CPI in 192517.5
CPI in 1987113.6
Inflation in 19252.34%
Inflation in 19873.65%
$100 in 1925 → 1987$649
$100 in 1987 → 1925$15.40

What happened to prices between 1925 and 1987

Between 1925 and 1987, the Consumer Price Index went from 17.5 to 113.6. Cumulatively, prices increased 549.1%, which works out to an average of 3.06% per year. Put differently, a dollar in 1925 bought what $0.15 buys in 1987: the 1925 dollar lost 84.6% of its purchasing power over these 62 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 1987

Every 1925 amount converts to 1987 at the same ratio, 6.49: $1,000 becomes $6,491, and $10,000 becomes $64,914.

Amount in 1925Value in 1987
$1.00$6.49
$5.00$32.46
$10.00$64.91
$20.00$130
$50.00$325
$100$649
$500$3,246
$1,000$6,491
$5,000$32,457
$10,000$64,914
$100,000$649,143
$1,000,000$6,491,429

Inflation by spending category, 1925–1987

Between 1925 and 1987, food rose the most, up 587.9%, while apparel rose the least, up 320.5%, against 549.1% for all items. The headline number is an average; here is what $100 of 1925 spending costs in 1987, by category:

Category Avg. yearly inflation $100 in 1925 →
All items (CPI-U) 3.06% $649
Food 3.16% $688
Apparel 2.34% $421

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 1987

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 1925–1987 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
1980–1987 4.69% 37.9% $649

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

$100 from 1925 had already become $153 by 1955, on its way to $649 in 1987; 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
1987 113.6 3.6% $649

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

The destination year: 1987

In 1987, prices rose 3.6% and $100 from 1925 had the buying power of $649; the year's average CPI of 113.6 is the level behind every 1987 figure on this page.

1987 tested whether the disinflation of the 1980s could survive its first real shock. Paul Volcker, who had run the Federal Reserve since 1979 and driven inflation down from 13.5% to routine mid-single digits, handed the chairmanship to Alan Greenspan in August. Inflation for the year came in at 3.6%, edging up as the expansion entered its fifth year and a weaker dollar, following 1985’s Plaza Accord, pushed up the price of imported goods. Then, on October 19, the stock market delivered Greenspan’s first crisis: the Dow Jones Industrial Average fell 22.6% in a single session, still the largest one-day percentage drop in its history, as computer-driven “portfolio insurance” trading amplified a global sell-off that had started days earlier. The Fed responded within 24 hours, publicly pledging to supply whatever liquidity the banking system needed, and the panic did not spread to the broader economy. Growth continued and unemployment kept falling through the rest of the year. It was an early demonstration of what became known as the “Greenspan put,” a Fed willing to move fast and loosen policy to contain financial shocks even while still watching inflation, that shaped central banking for the next two decades.

More about inflation in 1987 →

Cite this page

MLA: “Inflation from 1925 to 1987: $100 is worth $649 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1925-to-1987/

APA: InflationCalculator.com. Inflation from 1925 to 1987. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1925-to-1987/

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.