U.S. inflation · 1964–1981
$100 in 1964 has the same buying power as
$293
in 1981
| Cumulative price change | 193.2% |
|---|---|
| Average inflation rate | 6.53% per year |
| Converted amount ($100 base) | $293 |
| Price difference ($100 base) | $193 |
| CPI in 1964 | 31 |
| CPI in 1981 | 90.9 |
| Inflation in 1964 | 1.31% |
| Inflation in 1981 | 10.32% |
| $100 in 1964 → 1981 | $293 |
| $100 in 1981 → 1964 | $34.10 |
Between 1964 and 1981, the Consumer Price Index went from 31 to 90.9. Cumulatively, prices increased 193.2%, which works out to an average of 6.53% per year. Put differently, a dollar in 1964 bought what $0.34 buys in 1981.
| Amount in 1964 | Value in 1981 |
|---|---|
| $1.00 | $2.93 |
| $5.00 | $14.66 |
| $10.00 | $29.32 |
| $20.00 | $58.65 |
| $50.00 | $147 |
| $100 | $293 |
| $500 | $1,466 |
| $1,000 | $2,932 |
| $5,000 | $14,661 |
| $10,000 | $29,323 |
| $100,000 | $293,226 |
| $1,000,000 | $2,932,258 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1964 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1964 → |
|---|---|---|
| All items (CPI-U) | 6.53% | $293 |
| Energy | 9.02% | $434 |
| Medical care | 7.41% | $337 |
| Food | 6.62% | $297 |
| Transportation | 6.61% | $297 |
| Core (all items less food & energy) | 6.16% | $276 |
| Apparel | 4.21% | $201 |
Not shown because the BLS began these indexes after 1964: housing (1967–), recreation (1993–), education & communication (1993–).
| Year | CPI | Inflation rate | $100 from 1964 |
|---|---|---|---|
| 1964 | 31 | 1.3% | $100 |
| 1965 | 31.5 | 1.6% | $102 |
| 1966 | 32.4 | 2.9% | $105 |
| 1967 | 33.4 | 3.1% | $108 |
| 1968 | 34.8 | 4.2% | $112 |
| 1969 | 36.7 | 5.5% | $118 |
| 1970 | 38.8 | 5.7% | $125 |
| 1971 | 40.5 | 4.4% | $131 |
| 1972 | 41.8 | 3.2% | $135 |
| 1973 | 44.4 | 6.2% | $143 |
| 1974 | 49.3 | 11.0% | $159 |
| 1975 | 53.8 | 9.1% | $174 |
| 1976 | 56.9 | 5.8% | $184 |
| 1977 | 60.6 | 6.5% | $195 |
| 1978 | 65.2 | 7.6% | $210 |
| 1979 | 72.6 | 11.3% | $234 |
| 1980 | 82.4 | 13.5% | $266 |
| 1981 | 90.9 | 10.3% | $293 |
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 1964 to 1981: $100 is worth $293 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1964-to-1981/
APA: InflationCalculator.com. Inflation from 1964 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1964-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.