U.S. inflation · 1978–1999

Value of $100 in 1978, adjusted to 1999

$100 in 1978 is worth $256 in 1999, because prices increased 155.5% over that period, an average of 4.57% a year.

$100 in 1978 has the same buying power as

$256

in 1999

$100$178$25619781983198919941999$100 · 1978$256 · 1999
Detailed inflation statistics
Cumulative price change155.5%
Average inflation rate4.57% per year
Converted amount ($100 base)$256
Price difference ($100 base)$156
CPI in 197865.2
CPI in 1999166.6
Inflation in 19787.59%
Inflation in 19992.21%
$100 in 1978 → 1999$256
$100 in 1999 → 1978$39.14

What happened to prices between 1978 and 1999

Between 1978 and 1999, the Consumer Price Index went from 65.2 to 166.6. Cumulatively, prices increased 155.5%, which works out to an average of 4.57% per year. Put differently, a dollar in 1978 bought what $0.39 buys in 1999: the 1978 dollar lost 60.9% of its purchasing power over these 21 years.

Consumer prices rose 7.6% in 1978, accelerating for a second straight year as rising wages, a weakening dollar, and climbing energy costs outpaced the Federal Reserve’s response. Fed chairman G. William Miller, appointed by Carter that March, kept interest rates too low to slow the trend, a policy later cited as one reason inflation kept building toward the following year’s crisis. California voters responded to their own version of the problem that June, passing Proposition 13 by nearly two to one to cap property tax rates after years of rising home values had pushed tax bills up alongside them. Foreign policy delivered one of the decade’s genuine breakthroughs: President Carter brought Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin together for thirteen days of negotiations at Camp David that September, producing a framework for peace between the two countries that was signed as a treaty the following March. First-class postage rose to 15 cents that May 29, a rate that would hold longer than any other in the decade. The year ended in tragedy: cult leader Jim Jones directed the mass murder-suicide of more than 900 followers at a remote settlement in Guyana that November 18. A median household earned $15,064 in 1978, a new home sold for a median $55,700, and gas averaged 63 cents a gallon. Consumer prices stood 558.6% above their 1913 level, with the decade’s worst inflation still to come.

More about inflation in 1978 →

Common amounts: 1978 dollars in 1999

Every 1978 amount converts to 1999 at the same ratio, 2.56: $1,000 becomes $2,555, and $10,000 becomes $25,552.

Amount in 1978Value in 1999
$1.00$2.56
$5.00$12.78
$10.00$25.55
$20.00$51.10
$50.00$128
$100$256
$500$1,278
$1,000$2,555
$5,000$12,776
$10,000$25,552
$100,000$255,521
$1,000,000$2,555,215

Inflation by spending category, 1978–1999

Between 1978 and 1999, medical care rose the most, up 305.5%, while apparel rose the least, up 61.3%, against 155.5% for all items. The headline number is an average; here is what $100 of 1978 spending costs in 1999, by category:

Category Avg. yearly inflation $100 in 1978 →
All items (CPI-U) 4.57% $256
Medical care 6.89% $406
Core (all items less food & energy) 4.85% $270
Housing 4.71% $263
Transportation 4.13% $234
Food 4.00% $228
Energy 3.43% $203
Apparel 2.30% $161

Not shown because the BLS began these indexes after 1978: recreation (1993–), education & communication (1993–).

Decade by decade: 1978 to 1999

Prices climbed fastest in the 1970s, averaging 12.42% a year, and slowest in the 1990s (2.73% a year). Each step below chains into the full 1978–1999 change:

Years Avg. yearly inflation Price change $100 from 1978, at end
1978–1980 12.42% 26.4% $126
1980–1990 4.72% 58.6% $200
1990–1999 2.73% 27.5% $256

Year by year: CPI and the value of $100 from 1978

$100 from 1978 had already become $181 by 1988, on its way to $256 in 1999; 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 1.6% in 1998.

Year CPI Inflation rate $100 from 1978
1978 65.2 7.6% $100
1979 72.6 11.3% $111
1980 82.4 13.5% $126
1981 90.9 10.3% $139
1982 96.5 6.2% $148
1983 99.6 3.2% $153
1984 103.9 4.3% $159
1985 107.6 3.6% $165
1986 109.6 1.9% $168
1987 113.6 3.6% $174
1988 118.3 4.1% $181
1989 124 4.8% $190
1990 130.7 5.4% $200
1991 136.2 4.2% $209
1992 140.3 3.0% $215
1993 144.5 3.0% $222
1994 148.2 2.6% $227
1995 152.4 2.8% $234
1996 156.9 3.0% $241
1997 160.5 2.3% $246
1998 163 1.6% $250
1999 166.6 2.2% $256

The destination year: 1999

In 1999, prices rose 2.2% and $100 from 1978 had the buying power of $256; the year's average CPI of 166.6 is the level behind every 1999 figure on this page.

The median household earned about $40,700 in 1999, gas averaged $1.17 a gallon, and a new home cost roughly $161,000. Inflation ran at 2.2% for the year, ticking back up from 1998’s decade low as oil prices recovered from their collapse. The decade closed with two changes to the financial system that would shape the one after it: on January 1, the euro launched as an accounting currency across 11 European countries, trading alongside national currencies like the French franc and German mark ahead of physical cash in 2002, and in November, Congress passed the Gramm-Leach-Bliley Act, tearing down the Depression-era wall between commercial banks, investment banks, and insurers. Stock markets, meanwhile, were absorbed in a boom of their own: the Nasdaq surged through the year on soaring internet-stock valuations, and the Federal Reserve raised interest rates three times in the second half of 1999 partly to cool the exuberance, even as it pumped extra liquidity into the banking system to guard against any disruption from the Y2K rollover. A first-class stamp cost 33 cents. Inflation had spent the decade falling from 1990’s 5.4% peak to averages closer to 2-3%, and 1999 closed it out almost exactly where the 1990s as a whole had settled.

More about inflation in 1999 →

Cite this page

MLA: “Inflation from 1978 to 1999: $100 is worth $256 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1978-to-1999/

APA: InflationCalculator.com. Inflation from 1978 to 1999. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1978-to-1999/

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.