Consumer prices rose 3.1% in 1934, the first annual increase since 1926; every year from 1927 through 1933 had been flat or falling, so the turn marked a real break after eight years without a single gain. Currency policy did some of the work. The Gold Reserve Act, signed January 30, formally devalued the dollar by raising the official price of gold from $20.67 to $35 an ounce, part of the administration’s deliberate effort to reflate prices after four straight years of deflation. Financial regulation tightened at the same time: the Securities Exchange Act of June 6 created the Securities and Exchange Commission to police stock exchanges and enforce disclosure rules, a direct response to the speculation blamed for the 1929 crash. The recovery was fragile and unevenly felt, especially on the Great Plains, where drought had turned overplowed farmland to dust. Over May 9-11, high winds lifted an estimated 350 million tons of topsoil into the air, darkening skies as far away as Washington and New York and giving city readers who had never seen a wheat field a first glimpse of the disaster building in Kansas, Oklahoma, and Texas. Consumer prices stood 35.4% above their 1913 level, still well below the 1929 peak but rising for the first time since the Depression began. First-class postage held at 3 cents.
Year in review
Inflation in 1934
The U.S. inflation rate in 1934 was 3.1% (CPI: 13.4). Convert 1934 dollars to today →
3.1% 1934 inflation rate
-1.9% 1930s average
5.6% peak month (Mar)
1.5% lowest month (Aug)
What things cost in 1934
| First-class stamp | $0.03 |
|---|
What $100 from 1934 was worth later
| In 1940 | $104 |
|---|---|
| In 1950 | $180 |
| In 1960 | $221 |
| In 1970 | $290 |
| In 1980 | $615 |
| In 1990 | $975 |
| In 2000 | $1,285 |
| In 2010 | $1,627 |
| In 2020 | $1,931 |
| In 2026 | $2,475 |
Inflation in 1934, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 13.2 | 2.3% |
| February | 13.3 | 4.7% |
| March | 13.3 | 5.6% |
| April | 13.3 | 5.6% |
| May | 13.3 | 5.6% |
| June | 13.4 | 5.5% |
| July | 13.4 | 2.3% |
| August | 13.4 | 1.5% |
| September | 13.6 | 3.0% |
| October | 13.5 | 2.3% |
| November | 13.5 | 2.3% |
| December | 13.4 | 1.5% |
Economic events of 1934
- Consumer prices rise 3.1%, the first increase in eight years The CPI had not posted an annual gain since 1926; every year from 1927 through 1933 was flat or falling. The turn came as New Deal spending and currency reform began working through the economy.
- The Gold Reserve Act revalues the dollar Signed January 30, the act formally devalued the dollar, raising the official price of gold from $20.67 to $35 an ounce, part of the administration's effort to reflate prices after four years of deflation.
- Congress creates the Securities and Exchange Commission The Securities Exchange Act of June 6 established the SEC to regulate stock exchanges and enforce disclosure rules, a direct response to the speculation and manipulation blamed for the 1929 crash.
- A massive dust storm carries Great Plains topsoil to the East Coast Over May 9-11, high winds lifted an estimated 350 million tons of topsoil from the drought-stricken Plains, darkening skies as far away as Washington and New York and putting the developing Dust Bowl in front of city readers who had never seen a farm.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index history; Federal Reserve History; U.S. Securities and Exchange Commission, agency history; USPS historical postage rates.
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.