Consumer prices fell 1.7% in 1928, the second straight year of mild decline even as the stock market climbed sharply, a widening gap between asset prices and the cost of living that later economists pointed to as an early warning sign. The Federal Reserve tightened policy repeatedly over the year, raising its discount rate in an effort to slow the flood of borrowed money pouring into stock purchases without derailing the broader economy, a balancing act it ultimately failed to manage. Herbert Hoover won the presidential election that November, defeating Democrat Al Smith on a platform built around continuing the prosperity of the Coolidge years; few voters or policymakers anticipated how quickly that prosperity would end. First-class postage remained at 2 cents, a price that had now held for nine straight years.
Year in review
Inflation in 1928
The U.S. inflation rate in 1928 was -1.7% (CPI: 17.1). Convert 1928 dollars to today →
-1.7% 1928 inflation rate
0.1% 1920s average
0.0% peak month (Sep)
-2.8% lowest month (Jun)
What things cost in 1928
| First-class stamp | $0.02 |
|---|
What $100 from 1928 was worth later
| In 1930 | $97.66 |
|---|---|
| In 1940 | $81.87 |
| In 1950 | $141 |
| In 1960 | $173 |
| In 1970 | $227 |
| In 1980 | $482 |
| In 1990 | $764 |
| In 2000 | $1,007 |
| In 2010 | $1,275 |
| In 2020 | $1,514 |
| In 2026 | $1,940 |
Inflation in 1928, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 17.3 | -1.1% |
| February | 17.1 | -1.7% |
| March | 17.1 | -1.2% |
| April | 17.1 | -1.2% |
| May | 17.2 | -1.1% |
| June | 17.1 | -2.8% |
| July | 17.1 | -1.2% |
| August | 17.1 | -0.6% |
| September | 17.3 | 0.0% |
| October | 17.2 | -1.1% |
| November | 17.2 | -0.6% |
| December | 17.1 | -1.2% |
Economic events of 1928
- Consumer prices fall 1.7% for the second straight year Consumer prices stayed essentially flat for the back half of the decade even as the stock market climbed sharply, a gap between asset prices and the cost of living that later economists pointed to as a warning sign.
- The Federal Reserve raises rates repeatedly to curb stock speculation The Fed tightened policy several times over the year in an effort to slow borrowing for stock purchases without derailing the broader economy, a balancing act it would ultimately fail to manage.
- Herbert Hoover wins the presidential election Hoover defeated Democrat Al Smith on November 6, campaigning on the prosperity of the Coolidge years and promising it would continue.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index history; Federal Reserve History; USPS historical postage rates.
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.