What happened to prices between 1936 and 1984
Between 1936 and 1984, the Consumer Price Index went from 13.9 to 103.9. Cumulatively, prices increased 647.5%, which works out to an average of 4.28% per year. Put differently, a dollar in 1936 bought what $0.13 buys in 1984.
Consumer prices rose 1.5% in 1936, a third straight annual increase and part of a slow, steady climb back from the 1933 trough, though prices and the broader economy still had not fully recovered to their pre-Depression levels. Voters delivered their verdict on that recovery in November, reelecting Franklin D. Roosevelt over Republican Alf Landon in one of the most lopsided elections in U.S. history: Roosevelt carried 46 of 48 states and won the Electoral College 523 to 8, a broad public endorsement of the New Deal. Public works kept advancing that year, too. Hoover Dam, one of the era’s signature projects, had been dedicated in September 1935, but its first generators did not begin sending electricity over transmission lines to Los Angeles until October 1936, a milestone that showed how long even a celebrated project took to reach full operation. Consumer prices ended the year 40.4% above their 1913 level, still 18.7% below the 1929 peak, a gap that would keep narrowing until a sharp new recession interrupted the recovery the following year. First-class postage held at 3 cents.