Between 1932 and 2022, the Consumer Price Index went from 13.7 to 292.655.
Cumulatively, prices increased 2036.2%, which works out to an average of
3.46% per year. Put differently, a dollar in 1932 bought what
$0.05 buys in 2022.
Consumer prices fell 9.9% in 1932, the steepest single-year drop in the
CPI’s history to that point and the third straight year of decline following
1930 and 1931. Wages, farm incomes, and
industrial output all kept falling, and Congress tried to arrest the credit
collapse by creating the Reconstruction Finance Corporation that January,
capitalized at $500 million with authority to borrow up to $1.5 billion to
lend directly to banks, railroads, and other struggling businesses. Relief
did not reach ordinary households as quickly. That summer, tens of thousands
of World War I veterans and their families camped in Washington demanding
early payment of a service bonus not due until 1945; in July, U.S. Army
troops under General Douglas MacArthur forcibly dispersed the encampment, an
episode that badly damaged the Hoover administration’s standing months
before an election it was already losing. Voters delivered their verdict on
November 8, electing Franklin D. Roosevelt in a landslide over the
incumbent Hoover on a promise of relief and a “new deal for the American
people.” Roosevelt would not take office until the following March, leaving
a long and difficult transition during the depths of the crisis. First-class
postage rose from 2 cents to 3 cents on July 6, the first change to the rate
since 1919.
The headline number is an average. Individual categories moved very differently over this
period. Here is what $100 of 1932 spending costs in 2022, by category:
Category
Avg. yearly inflation
$100 in 1932 →
All items (CPI-U)
3.46%
$2,136
Food
3.79%
$2,854
Apparel
2.10%
$652
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–).
Long periods are sampled every 5 years; the calculator above covers any pair of years.
The destination year: 2022
2022 was the year inflation returned. Consumer prices rose 8.0% on average,
the worst since 1981, driven by pandemic-era supply chains, stimulus-fueled
demand, and an energy shock from the war in Ukraine. Gas briefly topped $5 a
gallon nationally for the first time ever, and “inflation” became the
top-ranked economic concern in nearly every poll of American households.
MLA: “Inflation from 1932 to 2022: $100 is worth $2,136 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1932-to-2022/
APA: InflationCalculator.com. Inflation from 1932 to 2022. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1932-to-2022/