U.S. inflation · 1965–1981
$100 in 1965 has the same buying power as
$289
in 1981
| Cumulative price change | 188.6% |
|---|---|
| Average inflation rate | 6.85% per year |
| Converted amount ($100 base) | $289 |
| Price difference ($100 base) | $189 |
| CPI in 1965 | 31.5 |
| CPI in 1981 | 90.9 |
| Inflation in 1965 | 1.61% |
| Inflation in 1981 | 10.32% |
| $100 in 1965 → 1981 | $289 |
| $100 in 1981 → 1965 | $34.65 |
Between 1965 and 1981, the Consumer Price Index went from 31.5 to 90.9. Cumulatively, prices increased 188.6%, which works out to an average of 6.85% per year. Put differently, a dollar in 1965 bought what $0.35 buys in 1981.
| Amount in 1965 | Value in 1981 |
|---|---|
| $1.00 | $2.89 |
| $5.00 | $14.43 |
| $10.00 | $28.86 |
| $20.00 | $57.71 |
| $50.00 | $144 |
| $100 | $289 |
| $500 | $1,443 |
| $1,000 | $2,886 |
| $5,000 | $14,429 |
| $10,000 | $28,857 |
| $100,000 | $288,571 |
| $1,000,000 | $2,885,714 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1965 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1965 → |
|---|---|---|
| All items (CPI-U) | 6.85% | $289 |
| Energy | 9.49% | $427 |
| Medical care | 7.73% | $329 |
| Transportation | 6.93% | $292 |
| Food | 6.90% | $291 |
| Core (all items less food & energy) | 6.47% | $273 |
| Apparel | 4.41% | $199 |
Not shown because the BLS began these indexes after 1965: housing (1967–), recreation (1993–), education & communication (1993–).
| Year | CPI | Inflation rate | $100 from 1965 |
|---|---|---|---|
| 1965 | 31.5 | 1.6% | $100 |
| 1966 | 32.4 | 2.9% | $103 |
| 1967 | 33.4 | 3.1% | $106 |
| 1968 | 34.8 | 4.2% | $110 |
| 1969 | 36.7 | 5.5% | $117 |
| 1970 | 38.8 | 5.7% | $123 |
| 1971 | 40.5 | 4.4% | $129 |
| 1972 | 41.8 | 3.2% | $133 |
| 1973 | 44.4 | 6.2% | $141 |
| 1974 | 49.3 | 11.0% | $157 |
| 1975 | 53.8 | 9.1% | $171 |
| 1976 | 56.9 | 5.8% | $181 |
| 1977 | 60.6 | 6.5% | $192 |
| 1978 | 65.2 | 7.6% | $207 |
| 1979 | 72.6 | 11.3% | $230 |
| 1980 | 82.4 | 13.5% | $262 |
| 1981 | 90.9 | 10.3% | $289 |
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 1965 to 1981: $100 is worth $289 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1965-to-1981/
APA: InflationCalculator.com. Inflation from 1965 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1965-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.