Consumer prices rose 0.7% in 1954, extending 1953’s 0.8% slowdown even as the economy tipped into recession, an early example of prices continuing to rise through a downturn rather than falling with it. The National Bureau of Economic Research dates that recession from July 1953 to May 1954, as defense spending fell after the Korean War armistice and the tighter monetary policy of the year before worked its way through the economy. The Supreme Court reshaped a different part of American life that spring: its unanimous May 17 ruling in Brown v. Board of Education held that “separate but equal” public schools violated the Constitution, overturning the legal basis for segregated education. Washington also closed the book on a different fight that year. Following the televised Army-McCarthy hearings that spring, the Senate voted 67 to 22 on December 2 to condemn Senator Joseph McCarthy’s conduct, ending his dominance of American politics after four years of anti-communist investigations. Consumer prices finished 1954 171.7% above their 1913 level, essentially flat with 1953 as the mild recession held the cost of living in check. First-class postage held at 3 cents, and the minimum wage stayed at 75 cents an hour.
Year in review
Inflation in 1954
The U.S. inflation rate in 1954 was 0.7% (CPI: 26.9). Convert 1954 dollars to today →
0.7% 1954 inflation rate
2.1% 1950s average
1.5% peak month (Feb)
-0.7% lowest month (Dec)
What things cost in 1954
| First-class stamp | $0.03 |
|---|---|
| Federal minimum wage | $0.75 |
What $100 from 1954 was worth later
| In 1960 | $110 |
|---|---|
| In 1970 | $144 |
| In 1980 | $306 |
| In 1990 | $486 |
| In 2000 | $640 |
| In 2010 | $811 |
| In 2020 | $962 |
| In 2026 | $1,233 |
Inflation in 1954, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 26.9 | 1.1% |
| February | 26.9 | 1.5% |
| March | 26.9 | 1.1% |
| April | 26.8 | 0.8% |
| May | 26.9 | 0.7% |
| June | 26.9 | 0.4% |
| July | 26.9 | 0.4% |
| August | 26.9 | 0.0% |
| September | 26.8 | -0.4% |
| October | 26.8 | -0.7% |
| November | 26.8 | -0.4% |
| December | 26.7 | -0.7% |
Economic events of 1954
- Consumer prices rise 0.7% amid a mild recession The modest gain continued 1953's slowdown even as unemployment climbed, an early example of prices rising through a downturn rather than falling with it.
- A recession sets in as Korean War spending winds down The National Bureau of Economic Research dates a downturn from July 1953 to May 1954, as defense spending fell after the armistice and the Federal Reserve's tighter policy from the year before worked through the economy.
- The Supreme Court rules school segregation unconstitutional The unanimous May 17 ruling in Brown v. Board of Education held that "separate but equal" public schools violated the Constitution, overturning the legal basis for segregated education.
- The Senate censures Joseph McCarthy Following the televised Army-McCarthy hearings that spring, the Senate voted 67 to 22 on December 2 to condemn Senator Joseph McCarthy's conduct, ending his dominance of American politics.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index history; National Bureau of Economic Research, US Business Cycle Expansions and Contractions; U.S. Supreme Court, Brown v. Board of Education (1954); U.S. Senate Historical Office (censure of Joseph McCarthy).
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.