Consumer prices rose 1.0% in 1961, down from 1960’s 1.7% as the economy climbed out of recession, a recovery the National Bureau of Economic Research dates to that February. Politically, the year opened with a changing of the guard: outgoing president Dwight Eisenhower’s farewell address on January 17 warned of a growing “military-industrial complex,” and three days later John F. Kennedy was sworn in, urging Americans to “ask not what your country can do for you.” The new administration’s first major foreign-policy test came quickly and badly: a CIA-organized force of Cuban exiles landed at the Bay of Pigs on April 17 aiming to topple Fidel Castro, and without the U.S. air support Kennedy withheld, the invasion collapsed within three days. Cold War tensions hardened further that August, when East German forces sealed the border between East and West Berlin overnight, building what would become the Berlin Wall and stopping the flow of refugees to the West. Domestically, the wage floor moved for the first time in five years: the Fair Labor Standards Amendments of 1961, effective that September, raised the minimum wage to $1.15 an hour and extended coverage to roughly 3.6 million additional workers. Consumer prices finished 1961 202.0% above their 1913 level. First-class postage held at 4 cents.
Year in review
Inflation in 1961
The U.S. inflation rate in 1961 was 1.0% (CPI: 29.9). Convert 1961 dollars to today →
1.0% 1961 inflation rate
2.4% 1960s average
1.7% peak month (Jan)
0.7% lowest month (Oct)
What things cost in 1961
| First-class stamp | $0.04 |
|---|---|
| Federal minimum wage | $1.15 |
What $100 from 1961 was worth later
| In 1970 | $130 |
|---|---|
| In 1980 | $276 |
| In 1990 | $437 |
| In 2000 | $576 |
| In 2010 | $729 |
| In 2020 | $866 |
| In 2026 | $1,109 |
Inflation in 1961, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 29.8 | 1.7% |
| February | 29.8 | 1.4% |
| March | 29.8 | 1.4% |
| April | 29.8 | 1.0% |
| May | 29.8 | 1.0% |
| June | 29.8 | 0.7% |
| July | 30 | 1.4% |
| August | 29.9 | 1.0% |
| September | 30 | 1.4% |
| October | 30 | 0.7% |
| November | 30 | 0.7% |
| December | 30 | 0.7% |
Economic events of 1961
- Consumer prices rise 1.0% as the economy climbs out of recession The recovery, dated by the National Bureau of Economic Research to that February, came without much price pressure even as the new Kennedy administration pushed for faster growth.
- Eisenhower warns of a "military-industrial complex" as Kennedy takes office Outgoing president Dwight Eisenhower's farewell address on January 17 cautioned against the growing influence of defense contractors on policy. Three days later, John F. Kennedy was sworn in and urged Americans to "ask not what your country can do for you."
- The Bay of Pigs invasion collapses within three days A CIA-organized force of Cuban exiles landed at Cuba's Bay of Pigs on April 17 aiming to topple Fidel Castro. Without the U.S. air support Kennedy withheld, the invasion fell apart by April 20, a major early foreign-policy setback for the new administration.
- East Germany builds the Berlin Wall Overnight on August 13, East German forces sealed the border between East and West Berlin with barbed wire and concrete, stopping the flow of refugees to the West and turning the city into the Cold War's most visible flashpoint.
- The minimum wage rises to $1.15 an hour The Fair Labor Standards Amendments of 1961, effective September 3, raised the wage floor from $1.00 and extended coverage to roughly 3.6 million additional workers in retail and other trades not previously covered.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index history; National Bureau of Economic Research, US Business Cycle Expansions and Contractions; John F. Kennedy Presidential Library and Museum; National Archives (Bay of Pigs, Berlin Wall); U.S. Department of Labor, history of the federal minimum wage.
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.