U.S. inflation · 1925–1996

Value of $100 in 1925, adjusted to 1996

$100 in 1925 is worth $897 in 1996, because prices increased 796.6% over that period, an average of 3.14% a year.

$100 in 1925 has the same buying power as

$897

in 1996

$74$485$89719251943196119781996$100 · 1925$897 · 1996
Detailed inflation statistics
Cumulative price change796.6%
Average inflation rate3.14% per year
Converted amount ($100 base)$897
Price difference ($100 base)$797
CPI in 192517.5
CPI in 1996156.9
Inflation in 19252.34%
Inflation in 19962.95%
$100 in 1925 → 1996$897
$100 in 1996 → 1925$11.15

What happened to prices between 1925 and 1996

Between 1925 and 1996, the Consumer Price Index went from 17.5 to 156.9. Cumulatively, prices increased 796.6%, which works out to an average of 3.14% per year. Put differently, a dollar in 1925 bought what $0.11 buys in 1996: the 1925 dollar lost 88.8% of its purchasing power over these 71 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 1996

Every 1925 amount converts to 1996 at the same ratio, 8.97: $1,000 becomes $8,966, and $10,000 becomes $89,657.

Amount in 1925Value in 1996
$1.00$8.97
$5.00$44.83
$10.00$89.66
$20.00$179
$50.00$448
$100$897
$500$4,483
$1,000$8,966
$5,000$44,829
$10,000$89,657
$100,000$896,571
$1,000,000$8,965,714

Inflation by spending category, 1925–1996

Between 1925 and 1996, food rose the most, up 829.1%, while apparel rose the least, up 400.8%, against 796.6% for all items. The headline number is an average; here is what $100 of 1925 spending costs in 1996, by category:

Category Avg. yearly inflation $100 in 1925 →
All items (CPI-U) 3.14% $897
Food 3.19% $929
Apparel 2.29% $501

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 1996

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 1925–1996 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
1980–1990 4.72% 58.6% $747
1990–1996 3.09% 20.0% $897

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

$100 from 1925 had already become $169 by 1960, on its way to $897 in 1996; 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
1990 130.7 5.4% $747
1995 152.4 2.8% $871
1996 156.9 3.0% $897

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

The destination year: 1996

In 1996, prices rose 3.0% and $100 from 1925 had the buying power of $897; the year's average CPI of 156.9 is the level behind every 1996 figure on this page.

The median household earned about $35,500 in 1996, gas averaged $1.23 a gallon, up noticeably from the mid-decade lull, and a new home cost roughly $140,000. Inflation ran at 3.0% for the year, ticking back up from 1995 as energy prices firmed. Washington passed two of the decade’s more consequential laws that year: in February, the Telecommunications Act rewrote the rules for phone, cable, and broadcast media for the first time since 1934, opening local markets to competition and easing ownership limits; in August, a welfare overhaul ended the federal guarantee of cash assistance, replacing it with block grants to states and time limits on benefits. In October, the federal minimum wage rose to $4.75 an hour, its first increase in five years and the opening step of a two-part law that would take it to $5.15 the following September. Two sweeping new laws and a minimum wage finally on the move again made 1996 a year that changed more about how the economy was governed than about how fast prices moved.

More about inflation in 1996 →

Cite this page

MLA: “Inflation from 1925 to 1996: $100 is worth $897 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1925-to-1996/

APA: InflationCalculator.com. Inflation from 1925 to 1996. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1925-to-1996/

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.