Consumer prices rose 10.9% in 1942, up from 1941’s already rapid 5.0% and the fastest increase since 1920, as the economy’s crash conversion to war production collided with shrinking supplies of civilian goods. The government tried to contain it: the General Maximum Price Regulation, effective May 18 and known as “General Max,” froze most retail prices at their highest March level, the broadest price control Washington had ever attempted. Rationing followed close behind. Sugar rationing began that May and gasoline rationing went nationwide in December, the leading edge of a system that would eventually cover meat, coffee, shoes, tires, and dozens of other goods before the war ended. The year’s other defining wartime measure had nothing to do with prices. Executive Order 9066, signed February 19, authorized the military to remove more than 110,000 Japanese Americans, most of them U.S. citizens, from the West Coast and hold them in inland internment camps for the war’s duration, one of the era’s starkest violations of civil liberties. Even with price controls in place, consumer prices climbed more than 10% for the first time since 1920, leaving the CPI 64.6% above its 1913 level. First-class postage held at 3 cents, and the minimum wage stayed at 30 cents an hour.
Year in review
Inflation in 1942
The U.S. inflation rate in 1942 was 10.9% (CPI: 16.3). Convert 1942 dollars to today →
10.9% 1942 inflation rate
5.6% 1940s average
13.2% peak month (May)
9.0% lowest month (Dec)
What things cost in 1942
| First-class stamp | $0.03 |
|---|---|
| Federal minimum wage | $0.30 |
What $100 from 1942 was worth later
| In 1950 | $148 |
|---|---|
| In 1960 | $182 |
| In 1970 | $238 |
| In 1980 | $506 |
| In 1990 | $802 |
| In 2000 | $1,056 |
| In 2010 | $1,338 |
| In 2020 | $1,588 |
| In 2026 | $2,035 |
Inflation in 1942, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 15.7 | 11.3% |
| February | 15.8 | 12.1% |
| March | 16 | 12.7% |
| April | 16.1 | 12.6% |
| May | 16.3 | 13.2% |
| June | 16.3 | 10.9% |
| July | 16.4 | 11.6% |
| August | 16.5 | 10.7% |
| September | 16.5 | 9.3% |
| October | 16.7 | 9.2% |
| November | 16.8 | 9.1% |
| December | 16.9 | 9.0% |
Economic events of 1942
- Consumer prices rise 10.9%, the fastest increase since 1920 Wartime demand collided with shortages of consumer goods as factories converted to war production, even as new federal price ceilings tried to hold the line.
- The General Maximum Price Regulation freezes most retail prices Effective May 18, "General Max" set ceiling prices for most goods at their highest March 1942 level, the broadest price control the government had ever attempted.
- Rationing reaches sugar, gasoline, and dozens of other goods Sugar rationing began in May and gasoline rationing went nationwide that December, part of a system that would eventually cover meat, coffee, shoes, tires, and more.
- Executive Order 9066 forces the removal and internment of Japanese Americans Signed February 19, the order authorized the military to remove more than 110,000 Japanese Americans, most of them U.S. citizens, from the West Coast into inland internment camps for the duration of the war.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index history; Federal Reserve History (wartime price controls); National Archives (Executive Order 9066; rationing).
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.