What happened to prices between 1990 and 1997
Between 1990 and 1997, the Consumer Price Index went from 130.7 to 160.5. Cumulatively, prices increased 22.8%, which works out to an average of 2.98% per year. Put differently, a dollar in 1990 bought what $0.81 buys in 1997.
In 1990, the median U.S. household earned about $29,900, gas averaged $1.15 a gallon, and mailing a letter cost a quarter. Inflation ran hot at 5.4% for the year, its highest rate since 1982, pushed up by an oil shock after Iraq’s invasion of Kuwait, and the economy tipped into recession that summer. It was the last gasp of elevated inflation before the long calm of the 1990s.