Consumer prices rose 8.1% in 1948, down slightly from 1947’s 14.4% but still the second straight year of sharp postwar inflation now that wartime price controls were fully gone. Congress moved to stabilize a different economy that April, passing the Economic Cooperation Act to fund the plan Secretary of State George Marshall had proposed the year before: more than $13 billion over four years to rebuild Western Europe and counter Soviet influence. The Cold War turned tense closer to the plan’s target that June, when Soviet forces cut off road and rail access to the Western-controlled sectors of Berlin. American and British aircraft responded almost immediately with an airlift of food, fuel, and supplies that would keep the city running for nearly a year. Domestic politics produced its own upset that November: nearly every poll and pundit had predicted a Republican win, but Harry Truman defeated New York Governor Thomas Dewey, handing the Chicago Tribune its famously wrong “Dewey Defeats Truman” headline. Consumer prices finished the year 143.4% above their 1913 level and 40.9% above 1929’s pre-Depression peak. First-class postage held at 3 cents, and the minimum wage stayed at 40 cents an hour.
Year in review
Inflation in 1948
The U.S. inflation rate in 1948 was 8.1% (CPI: 24.1). Convert 1948 dollars to today →
8.1% 1948 inflation rate
5.6% 1940s average
10.2% peak month (Jan)
3.0% lowest month (Dec)
What things cost in 1948
| First-class stamp | $0.03 |
|---|---|
| Federal minimum wage | $0.40 |
What $100 from 1948 was worth later
| In 1950 | $100 |
|---|---|
| In 1960 | $123 |
| In 1970 | $161 |
| In 1980 | $342 |
| In 1990 | $542 |
| In 2000 | $715 |
| In 2010 | $905 |
| In 2020 | $1,074 |
| In 2026 | $1,376 |
Inflation in 1948, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 23.7 | 10.2% |
| February | 23.5 | 9.3% |
| March | 23.4 | 6.8% |
| April | 23.8 | 8.7% |
| May | 23.9 | 9.1% |
| June | 24.1 | 9.5% |
| July | 24.4 | 9.9% |
| August | 24.5 | 8.9% |
| September | 24.5 | 6.5% |
| October | 24.4 | 6.1% |
| November | 24.2 | 4.8% |
| December | 24.1 | 3.0% |
Economic events of 1948
- Consumer prices rise 8.1%, a second straight year of sharp postwar inflation Wartime price controls were now fully gone, and the cost of living kept climbing fast, though a bit slower than 1947's jump.
- Congress funds the Marshall Plan The Economic Cooperation Act, signed April 3, authorized more than $13 billion in aid over four years to rebuild Western European economies and counter Soviet influence.
- The Soviet Union blockades West Berlin, and the Allies respond with an airlift Starting June 24, Soviet forces cut off road and rail access to the Western-controlled sectors of Berlin; American and British aircraft began flying in food, fuel, and supplies almost immediately, a mission that would run for nearly a year.
- Truman defeats Dewey, defying nearly every prediction Nearly every poll and pundit had predicted a Republican victory, but Truman defeated New York Governor Thomas Dewey on November 2, producing the famously wrong "Dewey Defeats Truman" headline in the Chicago Tribune.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index history; U.S. Department of State, Office of the Historian (Marshall Plan; Berlin Airlift); National Archives (1948 election).
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.