Between 1963 and 2022, the Consumer Price Index went from 30.6 to 292.655.
Cumulatively, prices increased 856.4%, which works out to an average of
3.90% per year. Put differently, a dollar in 1963 bought what
$0.10 buys in 2022.
Consumer prices rose 1.3% in 1963, up slightly from 1962’s
1.0% as the expansion entered its third year with inflation still low,
conditions that gave Kennedy room to push the large tax cut he had
proposed to Congress. The cost of a first-class stamp rose that January
7, to 5 cents from 4 cents, the first postal rate change since 1958. That
August 28, Martin Luther King Jr. delivered his “I Have a Dream” speech
from the steps of the Lincoln Memorial to a quarter million people
gathered for the March on Washington, building pressure on Congress to
pass the civil rights bill Kennedy had proposed that June. The year ended
in tragedy: Kennedy was assassinated while riding in a motorcade through
Dallas on November 22, and Lyndon B. Johnson was sworn in aboard Air Force
One that same afternoon. Johnson would spend the following year pushing
Kennedy’s stalled tax and civil rights agenda through Congress. The
minimum wage rose again that September, to $1.25 an hour, the second step
of the phased increase set two years earlier. Consumer prices finished
1963 209.1% above their 1913 level.
The headline number is an average. Individual categories moved very differently over this
period. Here is what $100 of 1963 spending costs in 2022, by category:
Category
Avg. yearly inflation
$100 in 1963 →
All items (CPI-U)
3.90%
$956
Medical care
5.43%
$2,268
Energy
4.47%
$1,320
Food
3.95%
$982
Core (all items less food & energy)
3.84%
$925
Transportation
3.72%
$862
Apparel
1.70%
$271
Not shown because the BLS began these indexes after 1963: housing (1967–), recreation (1993–), education & communication (1993–).
Long periods are sampled every 2 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 1963 to 2022: $100 is worth $956 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1963-to-2022/
APA: InflationCalculator.com. Inflation from 1963 to 2022. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1963-to-2022/