U.S. inflation · 1966–1981
$100 in 1966 has the same buying power as
$281
in 1981
| Cumulative price change | 180.6% |
|---|---|
| Average inflation rate | 7.12% per year |
| Converted amount ($100 base) | $281 |
| Price difference ($100 base) | $181 |
| CPI in 1966 | 32.4 |
| CPI in 1981 | 90.9 |
| Inflation in 1966 | 2.86% |
| Inflation in 1981 | 10.32% |
| $100 in 1966 → 1981 | $281 |
| $100 in 1981 → 1966 | $35.64 |
Between 1966 and 1981, the Consumer Price Index went from 32.4 to 90.9. Cumulatively, prices increased 180.6%, which works out to an average of 7.12% per year. Put differently, a dollar in 1966 bought what $0.36 buys in 1981.
| Amount in 1966 | Value in 1981 |
|---|---|
| $1.00 | $2.81 |
| $5.00 | $14.03 |
| $10.00 | $28.06 |
| $20.00 | $56.11 |
| $50.00 | $140 |
| $100 | $281 |
| $500 | $1,403 |
| $1,000 | $2,806 |
| $5,000 | $14,028 |
| $10,000 | $28,056 |
| $100,000 | $280,556 |
| $1,000,000 | $2,805,556 |
The headline number is an average. Individual categories moved very differently over this period. Here is what $100 of 1966 spending costs in 1981, by category:
| Category | Avg. yearly inflation | $100 in 1966 → |
|---|---|---|
| All items (CPI-U) | 7.12% | $281 |
| Energy | 10.03% | $419 |
| Medical care | 7.95% | $315 |
| Transportation | 7.32% | $289 |
| Food | 7.03% | $277 |
| Core (all items less food & energy) | 6.75% | $266 |
| Apparel | 4.53% | $194 |
Not shown because the BLS began these indexes after 1966: housing (1967–), recreation (1993–), education & communication (1993–).
| Year | CPI | Inflation rate | $100 from 1966 |
|---|---|---|---|
| 1966 | 32.4 | 2.9% | $100 |
| 1967 | 33.4 | 3.1% | $103 |
| 1968 | 34.8 | 4.2% | $107 |
| 1969 | 36.7 | 5.5% | $113 |
| 1970 | 38.8 | 5.7% | $120 |
| 1971 | 40.5 | 4.4% | $125 |
| 1972 | 41.8 | 3.2% | $129 |
| 1973 | 44.4 | 6.2% | $137 |
| 1974 | 49.3 | 11.0% | $152 |
| 1975 | 53.8 | 9.1% | $166 |
| 1976 | 56.9 | 5.8% | $176 |
| 1977 | 60.6 | 6.5% | $187 |
| 1978 | 65.2 | 7.6% | $201 |
| 1979 | 72.6 | 11.3% | $224 |
| 1980 | 82.4 | 13.5% | $254 |
| 1981 | 90.9 | 10.3% | $281 |
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 1966 to 1981: $100 is worth $281 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1966-to-1981/
APA: InflationCalculator.com. Inflation from 1966 to 1981. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1966-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.