U.S. inflation · 1932–1981
$100 in 1932 has the same buying power as
$664
in 1981
| Cumulative price change | 563.5% |
|---|---|
| Average inflation rate | 3.94% per year |
| Converted amount ($100 base) | $664 |
| Price difference ($100 base) | $564 |
| CPI in 1932 | 13.7 |
| CPI in 1981 | 90.9 |
| Inflation in 1932 | -9.87% |
| Inflation in 1981 | 10.32% |
| $100 in 1932 → 1981 | $664 |
| $100 in 1981 → 1932 | $15.07 |
Between 1932 and 1981, the Consumer Price Index went from 13.7 to 90.9. Cumulatively, prices increased 563.5%, which works out to an average of 3.94% per year. Put differently, a dollar in 1932 bought what $0.15 buys in 1981.
| Amount in 1932 | Value in 1981 |
|---|---|
| $1.00 | $6.64 |
| $5.00 | $33.18 |
| $10.00 | $66.35 |
| $20.00 | $133 |
| $50.00 | $332 |
| $100 | $664 |
| $500 | $3,318 |
| $1,000 | $6,635 |
| $5,000 | $33,175 |
| $10,000 | $66,350 |
| $100,000 | $663,504 |
| $1,000,000 | $6,635,036 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1932 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1932 → |
|---|---|---|
| All items (CPI-U) | 3.94% | $664 |
| Food | 4.53% | $875 |
| Apparel | 3.29% | $489 |
Not shown because the BLS began these indexes after 1932: 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 1932 |
|---|---|---|---|
| 1932 | 13.7 | -9.9% | $100 |
| 1934 | 13.4 | 3.1% | $97.81 |
| 1936 | 13.9 | 1.5% | $101 |
| 1938 | 14.1 | -2.1% | $103 |
| 1940 | 14 | 0.7% | $102 |
| 1942 | 16.3 | 10.9% | $119 |
| 1944 | 17.6 | 1.7% | $128 |
| 1946 | 19.5 | 8.3% | $142 |
| 1948 | 24.1 | 8.1% | $176 |
| 1950 | 24.1 | 1.3% | $176 |
| 1952 | 26.5 | 1.9% | $193 |
| 1954 | 26.9 | 0.7% | $196 |
| 1956 | 27.2 | 1.5% | $199 |
| 1958 | 28.9 | 2.8% | $211 |
| 1960 | 29.6 | 1.7% | $216 |
| 1962 | 30.2 | 1.0% | $220 |
| 1964 | 31 | 1.3% | $226 |
| 1966 | 32.4 | 2.9% | $236 |
| 1968 | 34.8 | 4.2% | $254 |
| 1970 | 38.8 | 5.7% | $283 |
| 1972 | 41.8 | 3.2% | $305 |
| 1974 | 49.3 | 11.0% | $360 |
| 1976 | 56.9 | 5.8% | $415 |
| 1978 | 65.2 | 7.6% | $476 |
| 1980 | 82.4 | 13.5% | $601 |
| 1981 | 90.9 | 10.3% | $664 |
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 1932 to 1981: $100 is worth $664 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1932-to-1981/
APA: InflationCalculator.com. Inflation from 1932 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1932-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.