$100 in 1956 is worth $718 in 2005,
because prices increased 618.0% over that period, an average of
4.11% a year.
$100 in 1956 has
the same buying power as
$718
in 2005
Detailed inflation statistics
Cumulative price change
618.0%
Average inflation rate
4.11% per year
Converted amount ($100 base)
$718
Price difference ($100 base)
$618
CPI in 1956
27.2
CPI in 2005
195.3
Inflation in 1956
1.49%
Inflation in 2005
3.39%
$100 in 1956 → 2005
$718
$100 in 2005 → 1956
$13.93
What happened to prices between 1956 and 2005
Between 1956 and 2005, the Consumer Price Index went from 27.2 to 195.3.
Cumulatively, prices increased 618.0%, which works out to an average of
4.11% per year. Put differently, a dollar in 1956 bought what
$0.14 buys in 2005: the 1956 dollar
lost 86.1% of its purchasing power over
these 49 years.
Consumer prices rose 1.5% in 1956, a return to mild inflation after they had
fallen 0.4% in 1955, the only annual decline of the decade. The two years sat
in the calmest stretch of the postwar index, a lull between the Korean War
price surge earlier in the 1950s and the acceleration that would return in
the 1970s. Congress had already raised the wage floor into that calm: the
Fair Labor Standards Amendments of 1955, signed the previous August, took
effect March 1 and lifted the federal minimum wage from 75 cents to $1 an
hour, the first increase since 1950. Eisenhower signed a longer-lasting
commitment on June 29, the Federal-Aid Highway Act, funding 41,000 miles of
controlled-access highway at 90% federal cost to build the Interstate
System, the largest public-works program the country had undertaken. He won
a second term that November, carrying 41 states and about 57% of the
popular vote in a rematch against Adlai Stevenson. Abroad, the Suez Crisis
broke the calm on the supply side: Egypt nationalized the canal on July 26,
and after Israel invaded the Sinai on October 29 with British and French
forces following, the canal’s closure and damaged pipelines squeezed oil
shipments to Western Europe for months. Consumer prices stood 174.7% above
their 1913 level by 1956, up 94% since 1940
alone, even after a decade that had barely moved the index. First-class
postage held at 3 cents, unchanged since 1932.
Every 1956 amount converts to 2005 at the same ratio, 7.18: $1,000 becomes
$7,180, and $10,000 becomes $71,801.
Amount in 1956
Value in 2005
$1.00
$7.18
$5.00
$35.90
$10.00
$71.80
$20.00
$144
$50.00
$359
$100
$718
$500
$3,590
$1,000
$7,180
$5,000
$35,901
$10,000
$71,801
$100,000
$718,015
$1,000,000
$7,180,147
Inflation by spending category, 1956–2005
Between 1956 and 2005, medical care rose the most, up 1610.1%, while apparel rose the least, up 173.5%, against 618.0% for all items. The headline number is an average; here is what $100 of 1956
spending costs in 2005, by category:
Category
Avg. yearly inflation
$100 in 1956 →
All items (CPI-U)
4.11%
$718
Medical care
5.97%
$1,710
Food
3.99%
$681
Transportation
3.94%
$664
Apparel
2.07%
$273
Not shown because the BLS began these indexes after 1956: core (all items less food & energy) (1957–), energy (1957–), housing (1967–), recreation (1993–), education & communication (1993–).
Decade by decade: 1956 to 2005
Prices climbed fastest in the 1970s, averaging 7.82% a year, and slowest in the 1950s (2.14% a year). Each step below chains into the full 1956–2005 change:
Years
Avg. yearly inflation
Price change
$100 from 1956, at end
1956–1960
2.14%
8.8%
$109
1960–1970
2.74%
31.1%
$143
1970–1980
7.82%
112.4%
$303
1980–1990
4.72%
58.6%
$481
1990–2000
2.80%
31.8%
$633
2000–2005
2.55%
13.4%
$718
Year by year: CPI and the value of $100 from 1956
$100 from 1956 had already become $303 by
1980, on its way to $718 in 2005; each row shows the CPI, that
year's inflation rate, and the running value.
Within the span, inflation peaked at 13.5% in 1980, and the smallest rise was 0.7% in 1959.
Long periods are sampled every 2 years; the calculator above covers any pair of years.
The destination year: 2005
In 2005, prices rose 3.4% and $100 from 1956 had the buying
power of $718; the year's average CPI of 195.3 is the level
behind every 2005 figure on this page.
Inflation rose to 3.4% in 2005, up from 2.7% in 2004, as gasoline averaged $2.30 a gallon,
compared with $1.88 the year before. Hurricane Katrina made landfall on August 29, and with
Hurricane Rita weeks later it disrupted Gulf Coast refining, pushing the national average
price past $3 in early September. The Federal Reserve raised its policy rate at every meeting,
from 2.25% to 4.25%, to keep energy costs from feeding into other prices. The median household
earned about $46,300, up 4.5% from 2004, but the median new home price rose a further 9%, to
$240,900. In April, Congress passed a bankruptcy law that made it harder to clear debts. A
first-class stamp stayed at 37 cents until January 2006, and the federal minimum wage stayed
at $5.15.
MLA: “Inflation from 1956 to 2005: $100 is worth $718 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1956-to-2005/
APA: InflationCalculator.com. Inflation from 1956 to 2005. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1956-to-2005/