U.S. inflation · 1938–1981
$100 in 1938 has the same buying power as
$645
in 1981
| Cumulative price change | 544.7% |
|---|---|
| Average inflation rate | 4.43% per year |
| Converted amount ($100 base) | $645 |
| Price difference ($100 base) | $545 |
| CPI in 1938 | 14.1 |
| CPI in 1981 | 90.9 |
| Inflation in 1938 | -2.08% |
| Inflation in 1981 | 10.32% |
| $100 in 1938 → 1981 | $645 |
| $100 in 1981 → 1938 | $15.51 |
Between 1938 and 1981, the Consumer Price Index went from 14.1 to 90.9. Cumulatively, prices increased 544.7%, which works out to an average of 4.43% per year. Put differently, a dollar in 1938 bought what $0.16 buys in 1981.
| Amount in 1938 | Value in 1981 |
|---|---|
| $1.00 | $6.45 |
| $5.00 | $32.23 |
| $10.00 | $64.47 |
| $20.00 | $129 |
| $50.00 | $322 |
| $100 | $645 |
| $500 | $3,223 |
| $1,000 | $6,447 |
| $5,000 | $32,234 |
| $10,000 | $64,468 |
| $100,000 | $644,681 |
| $1,000,000 | $6,446,809 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1938 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1938 → |
|---|---|---|
| All items (CPI-U) | 4.43% | $645 |
| Medical care | 4.97% | $805 |
| Food | 4.87% | $774 |
| Transportation | 4.41% | $638 |
| Apparel | 3.48% | $435 |
Not shown because the BLS began these indexes after 1938: core (all items less food & energy) (1957–), energy (1957–), housing (1967–), recreation (1993–), education & communication (1993–).
| Year | CPI | Inflation rate | $100 from 1938 |
|---|---|---|---|
| 1938 | 14.1 | -2.1% | $100 |
| 1940 | 14 | 0.7% | $99.29 |
| 1942 | 16.3 | 10.9% | $116 |
| 1944 | 17.6 | 1.7% | $125 |
| 1946 | 19.5 | 8.3% | $138 |
| 1948 | 24.1 | 8.1% | $171 |
| 1950 | 24.1 | 1.3% | $171 |
| 1952 | 26.5 | 1.9% | $188 |
| 1954 | 26.9 | 0.7% | $191 |
| 1956 | 27.2 | 1.5% | $193 |
| 1958 | 28.9 | 2.8% | $205 |
| 1960 | 29.6 | 1.7% | $210 |
| 1962 | 30.2 | 1.0% | $214 |
| 1964 | 31 | 1.3% | $220 |
| 1966 | 32.4 | 2.9% | $230 |
| 1968 | 34.8 | 4.2% | $247 |
| 1970 | 38.8 | 5.7% | $275 |
| 1972 | 41.8 | 3.2% | $296 |
| 1974 | 49.3 | 11.0% | $350 |
| 1976 | 56.9 | 5.8% | $404 |
| 1978 | 65.2 | 7.6% | $462 |
| 1980 | 82.4 | 13.5% | $584 |
| 1981 | 90.9 | 10.3% | $645 |
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 1938 to 1981: $100 is worth $645 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1938-to-1981/
APA: InflationCalculator.com. Inflation from 1938 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1938-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.