U.S. inflation · 1985–2009

Value of $100 in 1985, adjusted to 2009

$100 in 1985 is worth $199 in 2009, because prices increased 99.4% over that period, an average of 2.92% a year.

$100 in 1985 has the same buying power as

$199

in 2009

$100$150$20019851991199720032009$100 · 1985$199 · 2009
Detailed inflation statistics
Cumulative price change99.4%
Average inflation rate2.92% per year
Converted amount ($100 base)$199
Price difference ($100 base)$99.38
CPI in 1985107.6
CPI in 2009214.537
Inflation in 19853.56%
Inflation in 2009-0.36%
$100 in 1985 → 2009$199
$100 in 2009 → 1985$50.15

What happened to prices between 1985 and 2009

Between 1985 and 2009, the Consumer Price Index went from 107.6 to 214.537. Cumulatively, prices increased 99.4%, which works out to an average of 2.92% per year. Put differently, a dollar in 1985 bought what $0.50 buys in 2009: the 1985 dollar lost 49.8% of its purchasing power over these 24 years.

By 1985, low inflation had become the norm rather than the exception. Consumer prices rose 3.6% for the year, the fourth straight year in the 3-6% range following the double-digit spikes of 1980 and 1981, proof that the disinflation had held rather than merely paused, as it had after previous recessions. Overseas, the dollar had become a problem of its own: years of high U.S. interest rates had pulled in foreign capital and pushed the dollar’s value up so far that American exporters were losing business abroad, widening the trade deficit. In September, the finance ministers of the U.S., Japan, West Germany, France, and the United Kingdom met at New York’s Plaza Hotel and agreed to coordinate a managed decline of the dollar; it fell roughly 25% against major currencies over the following two years. At home, Congress responded to a federal deficit that had roughly tripled since 1980 by passing the Gramm-Rudman-Hollings Act in December, setting binding targets to shrink the deficit with automatic across-the-board cuts if lawmakers missed them. Households felt the calmer economy in small ways: first-class postage rose to 22 cents in February, its first increase since November 1981, after nearly four years at 20 cents.

More about inflation in 1985 →

Common amounts: 1985 dollars in 2009

Every 1985 amount converts to 2009 at the same ratio, 1.99: $1,000 becomes $1,994, and $10,000 becomes $19,938.

Amount in 1985Value in 2009
$1.00$1.99
$5.00$9.97
$10.00$19.94
$20.00$39.88
$50.00$99.69
$100$199
$500$997
$1,000$1,994
$5,000$9,969
$10,000$19,938
$100,000$199,384
$1,000,000$1,993,838

Inflation by spending category, 1985–2009

Between 1985 and 2009, medical care rose the most, up 230.9%, while apparel rose the least, up 14.4%, against 99.4% for all items. The headline number is an average; here is what $100 of 1985 spending costs in 2009, by category:

Category Avg. yearly inflation $100 in 1985 →
All items (CPI-U) 2.92% $199
Medical care 5.11% $331
Food 3.07% $206
Housing 2.96% $202
Core (all items less food & energy) 2.95% $201
Energy 2.71% $190
Transportation 2.20% $168
Apparel 0.56% $114

Not shown because the BLS began these indexes after 1985: recreation (1993–), education & communication (1993–).

Decade by decade: 1985 to 2009

Prices climbed fastest in the 1980s, averaging 3.97% a year, and slowest in the 2000s (2.47% a year). Each step below chains into the full 1985–2009 change:

Years Avg. yearly inflation Price change $100 from 1985, at end
1985–1990 3.97% 21.5% $121
1990–2000 2.80% 31.8% $160
2000–2009 2.47% 24.6% $199

Year by year: CPI and the value of $100 from 1985

$100 from 1985 had already become $149 by 1997, on its way to $199 in 2009; each row shows the CPI, that year's inflation rate, and the running value. Within the span, inflation peaked at 5.4% in 1990, and prices fell 0.4% in 2009, the deepest deflation of the period.

Year CPI Inflation rate $100 from 1985
1985 107.6 3.6% $100
1986 109.6 1.9% $102
1987 113.6 3.6% $106
1988 118.3 4.1% $110
1989 124 4.8% $115
1990 130.7 5.4% $121
1991 136.2 4.2% $127
1992 140.3 3.0% $130
1993 144.5 3.0% $134
1994 148.2 2.6% $138
1995 152.4 2.8% $142
1996 156.9 3.0% $146
1997 160.5 2.3% $149
1998 163 1.6% $151
1999 166.6 2.2% $155
2000 172.2 3.4% $160
2001 177.1 2.8% $165
2002 179.9 1.6% $167
2003 184 2.3% $171
2004 188.9 2.7% $176
2005 195.3 3.4% $182
2006 201.6 3.2% $187
2007 207.342 2.8% $193
2008 215.303 3.8% $200
2009 214.537 -0.4% $199

The destination year: 2009

In 2009, prices fell 0.4% and $100 from 1985 had the buying power of $199; the year's average CPI of 214.537 is the level behind every 2009 figure on this page.

2009 is the rarest kind of year in the modern price data: one where the cost of living went down. The CPI fell 0.4%, the first full-year deflation since 1955, as the Great Recession hollowed out demand and oil unwound from its $147 spike the summer before. Gasoline that had cost over $4 a gallon in July 2008 averaged $2.35 in 2009, and that energy collapse dragged the 12-month inflation rate to −2.1% by July, the deepest reading since 1950. Policymakers treated falling prices not as relief but as a warning: deflation raises the real weight of debt precisely when households are drowning in it, which is why the Federal Reserve pinned interest rates near zero, began buying bonds by the hundreds of billions, and Washington passed a $787 billion stimulus. The medicine took: prices stabilized within a year, and 2009 remains the textbook case of why central banks fear deflation more than moderate inflation.

More about inflation in 2009 →

Cite this page

MLA: “Inflation from 1985 to 2009: $100 is worth $199 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1985-to-2009/

APA: InflationCalculator.com. Inflation from 1985 to 2009. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1985-to-2009/

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.