$100 in 1978 is worth $318 in 2007,
because prices increased 218.0% over that period, an average of
4.07% a year.
$100 in 1978 has
the same buying power as
$318
in 2007
Detailed inflation statistics
Cumulative price change
218.0%
Average inflation rate
4.07% per year
Converted amount ($100 base)
$318
Price difference ($100 base)
$218
CPI in 1978
65.2
CPI in 2007
207.342
Inflation in 1978
7.59%
Inflation in 2007
2.85%
$100 in 1978 → 2007
$318
$100 in 2007 → 1978
$31.45
What happened to prices between 1978 and 2007
Between 1978 and 2007, the Consumer Price Index went from 65.2 to 207.342.
Cumulatively, prices increased 218.0%, which works out to an average of
4.07% per year. Put differently, a dollar in 1978 bought what
$0.31 buys in 2007: the 1978 dollar
lost 68.6% of its purchasing power over
these 29 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.
Every 1978 amount converts to 2007 at the same ratio, 3.18: $1,000 becomes
$3,180, and $10,000 becomes $31,801.
Amount in 1978
Value in 2007
$1.00
$3.18
$5.00
$15.90
$10.00
$31.80
$20.00
$63.60
$50.00
$159
$100
$318
$500
$1,590
$1,000
$3,180
$5,000
$15,900
$10,000
$31,801
$100,000
$318,009
$1,000,000
$3,180,092
Inflation by spending category, 1978–2007
Between 1978 and 2007, medical care rose the most, up 468.0%, while apparel rose the least, up 46.2%, against 218.0% for all items. The headline number is an average; here is what $100 of 1978
spending costs in 2007, by category:
Category
Avg. yearly inflation
$100 in 1978 →
All items (CPI-U)
4.07%
$318
Medical care
6.17%
$568
Energy
4.86%
$396
Housing
4.27%
$336
Core (all items less food & energy)
4.11%
$322
Transportation
3.85%
$299
Food
3.64%
$282
Apparel
1.32%
$146
Not shown because the BLS began these indexes after 1978: recreation (1993–), education & communication (1993–).
Decade by decade: 1978 to 2007
Prices climbed fastest in the 1970s, averaging 12.42% a year, and slowest in the 2000s (2.69% a year). Each step below chains into the full 1978–2007 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
1990–2000
2.80%
31.8%
$264
2000–2007
2.69%
20.4%
$318
Year by year: CPI and the value of $100 from 1978
$100 from 1978 had already become $215 by
1992, on its way to $318 in 2007; 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.
In 2007, prices rose 2.8% and $100 from 1978 had the buying
power of $318; the year's average CPI of 207.342 is the level
behind every 2007 figure on this page.
Inflation was 2.8% in 2007, with gasoline averaging $2.80 a gallon, but the year is better
known for what began underneath prices. In August, French bank BNP Paribas froze funds tied to
U.S. subprime mortgages, and credit between banks tightened. The Federal Reserve responded with
a half-point cut on September 18, its first in four years, and took the policy rate from 5.25% to
4.25% by December. The economy peaked that month, by the National Bureau of Economic Research’s
dating, and the Great Recession followed. The median household earned about $50,200, and the
median new home cost $247,900. Congress ended the decade-long freeze on the federal minimum wage
in May, with the first of three steps to $5.85 in July. A first-class stamp cost 41 cents.
MLA: “Inflation from 1978 to 2007: $100 is worth $318 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1978-to-2007/
APA: InflationCalculator.com. Inflation from 1978 to 2007. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1978-to-2007/