U.S. inflation · 1948–1981
$100 in 1948 has the same buying power as
$377
in 1981
| Cumulative price change | 277.2% |
|---|---|
| Average inflation rate | 4.10% per year |
| Converted amount ($100 base) | $377 |
| Price difference ($100 base) | $277 |
| CPI in 1948 | 24.1 |
| CPI in 1981 | 90.9 |
| Inflation in 1948 | 8.07% |
| Inflation in 1981 | 10.32% |
| $100 in 1948 → 1981 | $377 |
| $100 in 1981 → 1948 | $26.51 |
Between 1948 and 1981, the Consumer Price Index went from 24.1 to 90.9. Cumulatively, prices increased 277.2%, which works out to an average of 4.10% per year. Put differently, a dollar in 1948 bought what $0.27 buys in 1981.
| Amount in 1948 | Value in 1981 |
|---|---|
| $1.00 | $3.77 |
| $5.00 | $18.86 |
| $10.00 | $37.72 |
| $20.00 | $75.44 |
| $50.00 | $189 |
| $100 | $377 |
| $500 | $1,886 |
| $1,000 | $3,772 |
| $5,000 | $18,859 |
| $10,000 | $37,718 |
| $100,000 | $377,178 |
| $1,000,000 | $3,771,784 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1948 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1948 → |
|---|---|---|
| All items (CPI-U) | 4.10% | $377 |
| Medical care | 5.45% | $576 |
| Transportation | 4.68% | $452 |
| Food | 3.95% | $359 |
| Apparel | 2.48% | $224 |
Not shown because the BLS began these indexes after 1948: core (all items less food & energy) (1957–), energy (1957–), housing (1967–), recreation (1993–), education & communication (1993–).
| Year | CPI | Inflation rate | $100 from 1948 |
|---|---|---|---|
| 1948 | 24.1 | 8.1% | $100 |
| 1950 | 24.1 | 1.3% | $100 |
| 1952 | 26.5 | 1.9% | $110 |
| 1954 | 26.9 | 0.7% | $112 |
| 1956 | 27.2 | 1.5% | $113 |
| 1958 | 28.9 | 2.8% | $120 |
| 1960 | 29.6 | 1.7% | $123 |
| 1962 | 30.2 | 1.0% | $125 |
| 1964 | 31 | 1.3% | $129 |
| 1966 | 32.4 | 2.9% | $134 |
| 1968 | 34.8 | 4.2% | $144 |
| 1970 | 38.8 | 5.7% | $161 |
| 1972 | 41.8 | 3.2% | $173 |
| 1974 | 49.3 | 11.0% | $205 |
| 1976 | 56.9 | 5.8% | $236 |
| 1978 | 65.2 | 7.6% | $271 |
| 1980 | 82.4 | 13.5% | $342 |
| 1981 | 90.9 | 10.3% | $377 |
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 1948 to 1981: $100 is worth $377 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1948-to-1981/
APA: InflationCalculator.com. Inflation from 1948 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1948-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.