U.S. inflation · 1985–2010

Value of $100 in 1985, adjusted to 2010

$100 in 1985 is worth $203 in 2010, because prices increased 102.7% over that period, an average of 2.87% a year.

$100 in 1985 has the same buying power as

$203

in 2010

$100$151$20319851991199820042010$100 · 1985$203 · 2010
Detailed inflation statistics
Cumulative price change102.7%
Average inflation rate2.87% per year
Converted amount ($100 base)$203
Price difference ($100 base)$103
CPI in 1985107.6
CPI in 2010218.056
Inflation in 19853.56%
Inflation in 20101.64%
$100 in 1985 → 2010$203
$100 in 2010 → 1985$49.35

What happened to prices between 1985 and 2010

Between 1985 and 2010, the Consumer Price Index went from 107.6 to 218.056. Cumulatively, prices increased 102.7%, which works out to an average of 2.87% per year. Put differently, a dollar in 1985 bought what $0.49 buys in 2010: the 1985 dollar lost 50.7% of its purchasing power over these 25 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 2010

Every 1985 amount converts to 2010 at the same ratio, 2.03: $1,000 becomes $2,027, and $10,000 becomes $20,265.

Amount in 1985Value in 2010
$1.00$2.03
$5.00$10.13
$10.00$20.27
$20.00$40.53
$50.00$101
$100$203
$500$1,013
$1,000$2,027
$5,000$10,133
$10,000$20,265
$100,000$202,654
$1,000,000$2,026,543

Inflation by spending category, 1985–2010

Between 1985 and 2010, medical care rose the most, up 242.2%, while apparel rose the least, up 13.8%, against 102.7% for all items. The headline number is an average; here is what $100 of 1985 spending costs in 2010, by category:

Category Avg. yearly inflation $100 in 1985 →
All items (CPI-U) 2.87% $203
Medical care 5.04% $342
Energy 2.98% $208
Food 2.97% $208
Core (all items less food & energy) 2.87% $203
Housing 2.83% $201
Transportation 2.42% $182
Apparel 0.52% $114

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

Decade by decade: 1985 to 2010

Prices climbed fastest in the 1980s, averaging 3.97% a year, and slowest in the 2000s (2.39% a year). Each step below chains into the full 1985–2010 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
2000–2010 2.39% 26.6% $203

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

$100 from 1985 had already become $149 by 1997, on its way to $203 in 2010; 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
2010 218.056 1.6% $203

The destination year: 2010

In 2010, prices rose 1.6% and $100 from 1985 had the buying power of $203; the year's average CPI of 218.056 is the level behind every 2010 figure on this page.

2010 was a year of recovery without much price pressure. The CPI rose 1.6%, a return to growth after 2009’s deflation, with gasoline averaging $2.78 a gallon as energy prices climbed back from their recession lows. Housing costs barely moved: millions of foreclosed and vacant homes kept rents soft, and the median new home sold for about $221,800. The federal minimum wage stayed at $7.25, the level set in July 2009, and a first-class stamp cost 44 cents.

The Federal Reserve was more worried about too little inflation than too much. Its policy rate sat at 0–0.25%, and in November it announced a further $600 billion of Treasury purchases to hold down long-term borrowing costs. Congress passed the Dodd-Frank Act in July to tighten financial regulation, while a 110 billion euro rescue of Greece in May showed that the crisis had moved from American mortgages to European government debt. For anyone comparing dollars across the decade, 2010 is a useful baseline: prices were still close to their 2008 levels, and the years ahead brought a slow, steady climb.

More about inflation in 2010 →

Cite this page

MLA: “Inflation from 1985 to 2010: $100 is worth $203 today.” InflationCalculator.com, U.S. Bureau of Labor Statistics CPI-U data, https://inflationcalculator.com/inflation/1985-to-2010/

APA: InflationCalculator.com. Inflation from 1985 to 2010. Based on U.S. Bureau of Labor Statistics CPI-U data. Retrieved from https://inflationcalculator.com/inflation/1985-to-2010/

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.