Between 1934 and 2022, the Consumer Price Index went from 13.4 to 292.655.
Cumulatively, prices increased 2084.0%, which works out to an average of
3.57% per year. Put differently, a dollar in 1934 bought what
$0.05 buys in 2022.
Consumer prices rose 3.1% in 1934, the first annual increase since 1926;
every year from 1927 through 1933 had been flat or falling,
so the turn marked a real break after eight years without a single gain.
Currency policy did some of the work. The Gold Reserve Act, signed January
30, formally devalued the dollar by raising the official price of gold from
$20.67 to $35 an ounce, part of the administration’s deliberate effort to
reflate prices after four straight years of deflation. Financial regulation
tightened at the same time: the Securities Exchange Act of June 6 created
the Securities and Exchange Commission to police stock exchanges and enforce
disclosure rules, a direct response to the speculation blamed for the 1929
crash. The recovery was fragile and unevenly felt, especially on the Great
Plains, where drought had turned overplowed farmland to dust. Over May 9-11,
high winds lifted an estimated 350 million tons of topsoil into the air,
darkening skies as far away as Washington and New York and giving city
readers who had never seen a wheat field a first glimpse of the disaster
building in Kansas, Oklahoma, and Texas. Consumer prices stood 35.4% above
their 1913 level, still well below the 1929 peak but rising
for the first time since the Depression began. First-class postage held at
3 cents.
The headline number is an average. Individual categories moved very differently over this
period. Here is what $100 of 1934 spending costs in 2022, by category:
Category
Avg. yearly inflation
$100 in 1934 →
All items (CPI-U)
3.57%
$2,184
Food
3.79%
$2,633
Apparel
2.09%
$617
Not shown because the BLS began these indexes after 1934: 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 1934 to 2022: $100 is worth $2,184 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1934-to-2022/
APA: InflationCalculator.com. Inflation from 1934 to 2022. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1934-to-2022/