Consumer prices rose 5.8% in 1976, the calmest pace since 1972, as the economy pulled out of the 1973-75 recession and price growth settled to roughly half its 1974 peak. The recovery gave Americans room to celebrate: tall ships filled New York Harbor and fireworks lit cities nationwide on July 4 for the country’s bicentennial, a rare moment of shared celebration after Vietnam and Watergate. Politically, Jimmy Carter, a former Georgia governor running as a Washington outsider, defeated incumbent Gerald Ford that November, campaigning on restoring trust in government and bringing down inflation and unemployment together. In a California garage, Steve Jobs, Steve Wozniak, and Ronald Wayne founded Apple Computer that April to sell the Apple I, a bare circuit board aimed at electronics hobbyists, a business that looked far from consequential at the time. First-class postage, which had risen to 13 cents that past December 31, held there through the year, the longest stretch without a rate change since the Postal Service’s creation. A median household earned $12,686 in 1976, a new home sold for a median $44,200, and gas averaged 59 cents a gallon. Consumer prices stood 474.7% above their 1913 level, a calm interlude before inflation turned back up.
Year in review
Inflation in 1976
The U.S. inflation rate in 1976 was 5.8% (CPI: 56.9). Convert 1976 dollars to today →
5.8% 1976 inflation rate
7.1% 1970s average
6.7% peak month (Jan)
4.9% lowest month (Dec)
What things cost in 1976
| Median household income | $12,686 |
|---|---|
| Gas (per gallon) | $0.59 |
| Median home price | $44,200 |
| First-class stamp | $0.13 |
| Federal minimum wage | $2.30 |
What $100 from 1976 was worth later
| In 1980 | $145 |
|---|---|
| In 1990 | $230 |
| In 2000 | $303 |
| In 2010 | $383 |
| In 2020 | $455 |
| In 2026 | $583 |
Inflation in 1976, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 55.6 | 6.7% |
| February | 55.8 | 6.3% |
| March | 55.9 | 6.1% |
| April | 56.1 | 6.0% |
| May | 56.5 | 6.2% |
| June | 56.8 | 6.0% |
| July | 57.1 | 5.4% |
| August | 57.4 | 5.7% |
| September | 57.6 | 5.5% |
| October | 57.9 | 5.5% |
| November | 58 | 4.9% |
| December | 58.2 | 4.9% |
Economic events of 1976
- Consumer prices rise 5.8%, the calmest pace since 1972 Inflation eased as the economy recovered from the 1973-75 recession, though prices were still rising nearly twice as fast as they had for most of the 1960s.
- The United States marks its bicentennial Tall ships filled New York Harbor and fireworks lit cities nationwide on July 4 for the 200th anniversary of the Declaration of Independence, a rare moment of shared celebration after Vietnam and Watergate.
- Jimmy Carter defeats Gerald Ford for president The former Georgia governor and Washington outsider won that November, campaigning partly on restoring trust in government after Watergate and on a promise to bring inflation and unemployment down together.
- Apple Computer is founded in a California garage Steve Jobs, Steve Wozniak, and Ronald Wayne founded the company that April to sell the Apple I, a bare circuit board aimed at electronics hobbyists.
- First-class postage holds at 13 cents The rate, in effect since December 31, 1975, held through 1976 and 1977, the longest stretch without a postage change since the Postal Service's creation.
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 (1976 bicentennial; 1976 election).
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.