Consumer prices rose 6.5% in 1977, ticking back up from 1976’s 5.8% as the economic recovery strengthened, wages climbed, and energy costs pushed higher again. The year opened with a warning about that energy dependence: record cold across the Midwest and Northeast in January and February strained natural gas supplies so badly that schools and factories in several states shut down for days to conserve fuel. Jimmy Carter, inaugurated that January, made energy policy a centerpiece of his presidency, and Congress created the cabinet-level Department of Energy that August to consolidate programs built up piecemeal since the 1973 oil embargo. Culture offered some relief from the anxiety: released that May, Star Wars became the highest-grossing film in history to that point, drawing lines around theater blocks for months. The year also closed an era in a different way. Elvis Presley was found dead at his Graceland home on August 16 at age 42, drawing tens of thousands of mourners to Memphis. A median household earned $13,572 in 1977, a new home sold for a median $48,800, and gas averaged 62 cents a gallon. Consumer prices stood 512.1% above their 1913 level, with the energy anxieties of the year setting up the harder shocks of 1978 and 1979.
Year in review
Inflation in 1977
The U.S. inflation rate in 1977 was 6.5% (CPI: 60.6). Convert 1977 dollars to today →
6.5% 1977 inflation rate
7.1% 1970s average
7.0% peak month (Apr)
5.2% lowest month (Jan)
What things cost in 1977
| Median household income | $13,572 |
|---|---|
| Gas (per gallon) | $0.62 |
| Median home price | $48,800 |
| First-class stamp | $0.13 |
| Federal minimum wage | $2.30 |
What $100 from 1977 was worth later
| In 1980 | $136 |
|---|---|
| In 1990 | $216 |
| In 2000 | $284 |
| In 2010 | $360 |
| In 2020 | $427 |
| In 2026 | $547 |
Inflation in 1977, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 58.5 | 5.2% |
| February | 59.1 | 5.9% |
| March | 59.5 | 6.4% |
| April | 60 | 7.0% |
| May | 60.3 | 6.7% |
| June | 60.7 | 6.9% |
| July | 61 | 6.8% |
| August | 61.2 | 6.6% |
| September | 61.4 | 6.6% |
| October | 61.6 | 6.4% |
| November | 61.9 | 6.7% |
| December | 62.1 | 6.7% |
Economic events of 1977
- Consumer prices rise 6.5% as the recovery strengthens Inflation ticked back up from 1976's 5.8% as economic growth accelerated, wages rose, and energy costs climbed, reversing two years of gradual easing.
- A brutal winter triggers a natural gas shortage and factory shutdowns Record cold across the Midwest and Northeast in January and February strained natural gas supplies so badly that schools and factories in several states closed for days to conserve fuel, foreshadowing the energy anxieties that would define the rest of the decade.
- Jimmy Carter is inaugurated and creates the Department of Energy Carter took office that January promising a comprehensive energy policy; Congress created the cabinet-level Department of Energy that August, consolidating federal programs built up piecemeal since the 1973 oil embargo.
- Star Wars becomes a cultural and box-office phenomenon Released that May, the film became the highest-grossing movie in history to that point, a rare bright spot in a year otherwise dominated by economic anxiety.
- Elvis Presley dies at age 42 Presley was found dead at his Graceland home on August 16, an event that drew tens of thousands of mourners to Memphis and marked, for many, the symbolic end of an era in American culture.
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; U.S. Department of Energy (department history); National Archives (1977 winter energy crisis).
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.