In 1995, gas averaged $1.15 a gallon, a new home cost roughly $133,900, and the median household earned about $34,100. Inflation ran at 2.8% for the year, little changed from 1994, as the Federal Reserve shifted from raising rates to cutting them. Having lifted its policy rate six times the year before, the Fed judged by July that the economy had cooled enough on its own, and trimmed rates instead, an outcome economists would later point to as a rare soft landing. The year opened with a currency crisis: Mexico’s peso lost roughly half its value against the dollar in a matter of weeks, and the U.S. Treasury and the IMF assembled a $50 billion rescue package, controversial in Congress, to stabilize it and keep the crisis from spreading to other emerging markets. Closer to home, a budget standoff between President Clinton and the Republican Congress shut down federal agencies twice, first for five days in November and then for 21 days spanning December into January 1996, the longest shutdown up to that point. The Postal Service raised the cost of a first-class stamp to 32 cents in January. Low, steady inflation was about the only calm part of 1995’s economic story.
Year in review
Inflation in 1995
The U.S. inflation rate in 1995 was 2.8% (CPI: 152.4). Convert 1995 dollars to today →
2.8% 1995 inflation rate
3.0% 1990s average
3.2% peak month (May)
2.5% lowest month (Dec)
What things cost in 1995
In 1995, the median household income was $34,076, and a gallon of gas cost $1.15.
| Median household income | $34,076 |
|---|---|
| Gas (per gallon) | $1.15 |
| Median home price | $133,900 |
| First-class stamp | $0.32 |
| Federal minimum wage | $4.25 |
What $100 from 1995 was worth later
$100 from 1995 had the buying power of $218 by 2026; each milestone links to that conversion.
| In 2000 | $113 |
|---|---|
| In 2010 | $143 |
| In 2020 | $170 |
| In 2026 | $218 |
Inflation in 1995, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 150.3 | 2.8% |
| February | 150.9 | 2.9% |
| March | 151.4 | 2.9% |
| April | 151.9 | 3.1% |
| May | 152.2 | 3.2% |
| June | 152.5 | 3.0% |
| July | 152.5 | 2.8% |
| August | 152.9 | 2.6% |
| September | 153.2 | 2.5% |
| October | 153.7 | 2.8% |
| November | 153.6 | 2.6% |
| December | 153.5 | 2.5% |
Economic events of 1995
A $50 billion rescue package is assembled for Mexico after the peso collapses; prices rose 2.8% that year.
- A $50 billion rescue package is assembled for Mexico after the peso collapses Mexico's currency lost roughly half its value against the dollar in the final weeks of 1994 and into January 1995. The U.S. Treasury and the IMF put together a loan package, controversial in Congress, to stabilize the peso and prevent the crisis from spreading to other emerging markets.
- The Federal Reserve reverses course and cuts interest rates in July After raising rates six times in 1994, the Fed judged the economy had slowed enough to avoid overheating and trimmed its policy rate, an outcome economists later called a rare soft landing.
- The federal government shuts down twice over a budget standoff Disputes between President Clinton and the Republican Congress over spending cuts closed federal agencies for five days in November and then for 21 days spanning December 1995 into January 1996, the longest shutdown up to that point.
- The first-class stamp rises to 32 cents in January The U.S. Postal Service's increase from 29 cents was its first in four years.
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.