1991 opened in recession and closed in a slow, uneven recovery. The median household earned about $30,100 for the year, gas averaged $1.14 a gallon, and a new home cost roughly $120,000. Inflation ran at 4.2% for the year, down from 1990’s oil-driven spike, as the Gulf War ended in February and crude oil retreated from its autumn highs. The recession itself, dated by the National Bureau of Economic Research from July 1990 to March 1991, was technically over by spring, but hiring stayed weak well into 1992, the stretch economists came to call the jobless recovery. The Federal Reserve kept cutting interest rates through the year to support growth, reversing the tightening campaign it had run through the late 1980s. In April the federal minimum wage rose to $4.25 an hour, the second step of an increase from the $3.35 rate that had held since 1981. The Postal Service had already raised the cost of a first-class stamp to 29 cents that February. It was the first full year of the decade without an oil shock driving prices, even if the job market took longer to follow.
Year in review
Inflation in 1991
The U.S. inflation rate in 1991 was 4.2% (CPI: 136.2). Convert 1991 dollars to today →
4.2% 1991 inflation rate
3.0% 1990s average
5.7% peak month (Jan)
2.9% lowest month (Oct)
What things cost in 1991
In 1991, the median household income was $30,126, and a gallon of gas cost $1.14.
| Median household income | $30,126 |
|---|---|
| Gas (per gallon) | $1.14 |
| Median home price | $120,000 |
| First-class stamp | $0.29 |
| Federal minimum wage | $4.25 |
What $100 from 1991 was worth later
$100 from 1991 had the buying power of $244 by 2026; each milestone links to that conversion.
| In 2000 | $126 |
|---|---|
| In 2010 | $160 |
| In 2020 | $190 |
| In 2026 | $244 |
Inflation in 1991, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 134.6 | 5.7% |
| February | 134.8 | 5.3% |
| March | 135 | 4.9% |
| April | 135.2 | 4.9% |
| May | 135.6 | 5.0% |
| June | 136 | 4.7% |
| July | 136.2 | 4.4% |
| August | 136.6 | 3.8% |
| September | 137.2 | 3.4% |
| October | 137.4 | 2.9% |
| November | 137.8 | 3.0% |
| December | 137.9 | 3.1% |
Economic events of 1991
The Gulf War ends in February, and oil prices retreat from their autumn spike; prices rose 4.2% that year.
- The Gulf War ends in February, and oil prices retreat from their autumn spike A U.S.-led coalition drove Iraqi forces out of Kuwait in a six-week campaign that ended February 28. Crude oil, which had roughly doubled after Iraq's August 1990 invasion, fell back toward pre-invasion levels through the spring, easing the energy costs that had pushed inflation to its 1990 peak.
- The 1990-91 recession officially ends in March, but hiring stays weak into 1992 The National Bureau of Economic Research dates the downturn from July 1990 to March 1991, eight months. Job growth remained sluggish for more than a year afterward, a stretch that came to be known as the jobless recovery.
- The Federal Reserve keeps cutting interest rates to support the recovery Having raised rates through the late 1980s to fight inflation, the Fed reversed course through 1991, lowering its policy rate repeatedly as growth struggled to take hold after the recession.
- The federal minimum wage rises to $4.25 an hour in April It was the second step of a two-part increase from the $3.35 rate that had held since 1981; the first step, to $3.80, took effect the year before.
Sources: U.S. Census Bureau, Current Population Survey (income); U.S. Census Bureau, New Residential Sales (home price); U.S. Energy Information Administration (gasoline); U.S. Department of Labor (minimum wage); USPS historical rates.
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.