Consumer prices rose 9.1% in 1975, easing slightly from 1974’s 11.0% but still running far above anything the country had experienced before the decade began. The recession that started in November 1973, the deepest since the Great Depression, bottomed out that March, yet unemployment kept climbing through the year and touched 9%, a combination of high inflation and high joblessness that had no precedent in the postwar data. Vietnam ended that April 30, when North Vietnamese forces captured Saigon and the last Americans were evacuated by helicopter from the U.S. embassy roof. Fiscal strain hit closer to home too: New York City, facing bankruptcy after years of borrowing to paper over budget gaps, asked Washington for help that October. President Ford’s initial refusal produced the Daily News headline “Ford to City: Drop Dead,” though he ultimately signed a federal loan package that December. Amid the gloom, Bill Gates and Paul Allen founded Microsoft that April in Albuquerque, New Mexico, to sell a version of the BASIC programming language for the Altair 8800, one of the first personal computers sold to hobbyists. A median household earned $11,800 in 1975, a new home sold for a median $39,300, and first-class postage held at 10 cents, unchanged since 1974’s increase. Consumer prices stood 443.4% above their 1913 level, with the decade barely past its midpoint.
Year in review
Inflation in 1975
The U.S. inflation rate in 1975 was 9.1% (CPI: 53.8). Convert 1975 dollars to today →
9.1% 1975 inflation rate
7.1% 1970s average
11.8% peak month (Jan)
6.9% lowest month (Dec)
What things cost in 1975
| Median household income | $11,800 |
|---|---|
| Gas (per gallon) | $0.57 |
| Median home price | $39,300 |
| First-class stamp | $0.10 |
| Federal minimum wage | $2.10 |
What $100 from 1975 was worth later
| In 1980 | $153 |
|---|---|
| In 1990 | $243 |
| In 2000 | $320 |
| In 2010 | $405 |
| In 2020 | $481 |
| In 2026 | $616 |
Inflation in 1975, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 52.1 | 11.8% |
| February | 52.5 | 11.2% |
| March | 52.7 | 10.3% |
| April | 52.9 | 10.2% |
| May | 53.2 | 9.5% |
| June | 53.6 | 9.4% |
| July | 54.2 | 9.7% |
| August | 54.3 | 8.6% |
| September | 54.6 | 7.9% |
| October | 54.9 | 7.4% |
| November | 55.3 | 7.4% |
| December | 55.5 | 6.9% |
Economic events of 1975
- Consumer prices rise 9.1% while unemployment hits 9%, the deepest slump since the 1930s The recession that began in November 1973 bottomed out that March, but unemployment kept climbing through the year even as prices, still working through the 1973-74 oil shock, rose faster than the economy could absorb.
- Saigon falls, ending the Vietnam War North Vietnamese forces captured Saigon on April 30, prompting a chaotic helicopter evacuation of remaining American personnel and South Vietnamese allies from the U.S. embassy roof, and formally ending the war.
- New York City nearly defaults, and Washington initially refuses to help Facing bankruptcy after years of borrowing to cover budget gaps, the city sought federal aid that October. President Ford's initial refusal produced the famous Daily News headline "Ford to City: Drop Dead," though he relented and signed a federal loan package that December.
- Microsoft is founded in Albuquerque Bill Gates and Paul Allen founded the company that April to sell a version of the BASIC programming language for the Altair 8800, one of the first commercially available personal computers.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index history; U.S. Census Bureau, Current Population Survey (income); U.S. Census Bureau, New Residential Sales (home price); U.S. Department of Labor (minimum wage); USPS historical rates; National Archives (fall of Saigon); New York City Municipal Archives (fiscal crisis).
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.