Between 1935 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
3.58% per year. Put differently, a dollar in 1935 bought what
$0.05 buys in 2022.
Consumer prices rose 2.2% in 1935, a second straight annual increase after
1934’s turnaround, though the CPI still sat well below its
1929 peak and the recovery remained uneven and incomplete.
The year’s biggest legislative achievements aimed at making that unevenness
less punishing. Roosevelt signed the Social Security Act on August 14,
creating federal old-age pensions and unemployment insurance funded by a new
payroll tax, the first federal safety net of its kind in U.S. history. That
spring, the Works Progress Administration had already begun putting millions
of unemployed Americans to work on public construction, arts, and
infrastructure projects, becoming the largest jobs program of the New Deal.
Congress added labor protections to the mix that July with the National
Labor Relations Act, guaranteeing most private-sector workers the right to
organize and bargain collectively. The human cost of the Dust Bowl was still
mounting on the Plains: the storm known as Black Sunday hit on April 14,
one of the worst of the decade, and continued drought kept driving farm
families off land that could no longer support them. Consumer prices ended
the year 38.4% above their 1913 level. 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 1935 spending costs in 2022, by category:
Category
Avg. yearly inflation
$100 in 1935 →
All items (CPI-U)
3.58%
$2,136
Medical care
4.68%
$5,358
Food
3.75%
$2,463
Transportation
3.43%
$1,876
Apparel
2.10%
$611
Not shown because the BLS began these indexes after 1935: core (all items less food & energy) (1957–), energy (1957–), housing (1967–), 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 1935 to 2022: $100 is worth $2,136 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1935-to-2022/
APA: InflationCalculator.com. Inflation from 1935 to 2022. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1935-to-2022/