Consumer prices rose 5.0% in 1941, up sharply from just 0.7% in 1940 and the fastest annual increase since 1920, as rearmament and Lend-Lease production pushed demand well ahead of peacetime supply even before the United States formally joined the war. Congress had already tilted the country away from neutrality that March, passing the Lend-Lease Act to arm Britain, and later the Soviet Union and other Allies, without requiring immediate payment. That April, the government created the Office of Price Administration to hold down the cost of civilian goods, the start of a price-control system that would keep official inflation numbers well below what wartime demand alone would have produced over the next four years. Then, on December 7, Japan attacked the naval base at Pearl Harbor, destroying much of the Pacific Fleet and killing more than 2,400 Americans. Congress declared war on Japan the next day and on Germany and Italy three days later, ending years of debate over whether the United States should stay out of the conflict spreading across Europe and Asia. Consumer prices, already up 48.5% from their 1913 level, would climb far faster over the next two years as the economy converted fully to war production. First-class postage held at 3 cents, and the minimum wage stayed at 30 cents an hour.
Year in review
Inflation in 1941
The U.S. inflation rate in 1941 was 5.0% (CPI: 14.7). Convert 1941 dollars to today →
5.0% 1941 inflation rate
5.6% 1940s average
10.0% peak month (Nov)
0.7% lowest month (Feb)
What things cost in 1941
| First-class stamp | $0.03 |
|---|---|
| Federal minimum wage | $0.30 |
What $100 from 1941 was worth later
| In 1950 | $164 |
|---|---|
| In 1960 | $201 |
| In 1970 | $264 |
| In 1980 | $561 |
| In 1990 | $889 |
| In 2000 | $1,171 |
| In 2010 | $1,483 |
| In 2020 | $1,761 |
| In 2026 | $2,256 |
Inflation in 1941, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 14.1 | 1.4% |
| February | 14.1 | 0.7% |
| March | 14.2 | 1.4% |
| April | 14.3 | 2.1% |
| May | 14.4 | 2.9% |
| June | 14.7 | 4.3% |
| July | 14.7 | 5.0% |
| August | 14.9 | 6.4% |
| September | 15.1 | 7.9% |
| October | 15.3 | 9.3% |
| November | 15.4 | 10.0% |
| December | 15.5 | 9.9% |
Economic events of 1941
- Consumer prices rise 5.0% as rearmament accelerates It was the fastest annual increase since 1920, driven by defense spending and Lend-Lease production even before the United States formally entered the war.
- Congress passes the Lend-Lease Act Signed March 11, the law let the United States supply Britain, and later the Soviet Union and other Allies, with war materiel without requiring immediate payment, effectively ending the pretense of neutrality.
- The Office of Price Administration is created to hold down wartime prices Established that April, the agency gained authority to set price ceilings on civilian goods, the start of the price-control system that would keep official inflation numbers down through the rest of the war.
- Japan attacks Pearl Harbor, and the United States enters World War II The December 7 attack destroyed much of the Pacific Fleet at its Hawaii base and killed more than 2,400 Americans. Congress declared war on Japan the next day, and on Germany and Italy three days later.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index history; U.S. Department of State, Office of the Historian (Lend-Lease); Federal Reserve History (Office of Price Administration); National Archives (Pearl Harbor).
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.