U.S. inflation · 1931–1981
$100 in 1931 has the same buying power as
$598
in 1981
| Cumulative price change | 498.0% |
|---|---|
| Average inflation rate | 3.64% per year |
| Converted amount ($100 base) | $598 |
| Price difference ($100 base) | $498 |
| CPI in 1931 | 15.2 |
| CPI in 1981 | 90.9 |
| Inflation in 1931 | -8.98% |
| Inflation in 1981 | 10.32% |
| $100 in 1931 → 1981 | $598 |
| $100 in 1981 → 1931 | $16.72 |
Between 1931 and 1981, the Consumer Price Index went from 15.2 to 90.9. Cumulatively, prices increased 498.0%, which works out to an average of 3.64% per year. Put differently, a dollar in 1931 bought what $0.17 buys in 1981.
| Amount in 1931 | Value in 1981 |
|---|---|
| $1.00 | $5.98 |
| $5.00 | $29.90 |
| $10.00 | $59.80 |
| $20.00 | $120 |
| $50.00 | $299 |
| $100 | $598 |
| $500 | $2,990 |
| $1,000 | $5,980 |
| $5,000 | $29,901 |
| $10,000 | $59,803 |
| $100,000 | $598,026 |
| $1,000,000 | $5,980,263 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1931 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1931 → |
|---|---|---|
| All items (CPI-U) | 3.64% | $598 |
| Food | 4.04% | $726 |
| Apparel | 2.98% | $433 |
Not shown because the BLS began these indexes after 1931: 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 1931 |
|---|---|---|---|
| 1931 | 15.2 | -9.0% | $100 |
| 1933 | 13 | -5.1% | $85.53 |
| 1935 | 13.7 | 2.2% | $90.13 |
| 1937 | 14.4 | 3.6% | $94.74 |
| 1939 | 13.9 | -1.4% | $91.45 |
| 1941 | 14.7 | 5.0% | $96.71 |
| 1943 | 17.3 | 6.1% | $114 |
| 1945 | 18 | 2.3% | $118 |
| 1947 | 22.3 | 14.4% | $147 |
| 1949 | 23.8 | -1.2% | $157 |
| 1951 | 26 | 7.9% | $171 |
| 1953 | 26.7 | 0.8% | $176 |
| 1955 | 26.8 | -0.4% | $176 |
| 1957 | 28.1 | 3.3% | $185 |
| 1959 | 29.1 | 0.7% | $191 |
| 1961 | 29.9 | 1.0% | $197 |
| 1963 | 30.6 | 1.3% | $201 |
| 1965 | 31.5 | 1.6% | $207 |
| 1967 | 33.4 | 3.1% | $220 |
| 1969 | 36.7 | 5.5% | $241 |
| 1971 | 40.5 | 4.4% | $266 |
| 1973 | 44.4 | 6.2% | $292 |
| 1975 | 53.8 | 9.1% | $354 |
| 1977 | 60.6 | 6.5% | $399 |
| 1979 | 72.6 | 11.3% | $478 |
| 1981 | 90.9 | 10.3% | $598 |
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 1931 to 1981: $100 is worth $598 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1931-to-1981/
APA: InflationCalculator.com. Inflation from 1931 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1931-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.