Thursday, December 28, 2017

U.S. Inflation Rate, 1965-2016 ($100)

According to the Bureau of Labor Statistics consumer price index, the dollar experienced an average inflation rate of 4.06% per year. Prices in 2016 are661.9% higher than prices in 1965.
In other words, $100 in the year 1965 is equivalent to $761.93 in 2016, a difference of $661.93 over 51 years.
The inflation rate in 2016 was 1.26%.
Inflation from 1965 to 2016
Cumulative price change661.93%
Average inflation rate4.06%
Price difference ($100 base)$661.93
CPI in 196531.5
CPI in 2016240.007

U.S. inflation from 1913 to 2017

Inflation rates for specific categories

Milk · Gasoline (all types) · Food · More

Inflation-adjusted measures

S&P 500 price · S&P 500 earnings · Shiller P/E

How to calculate the inflation rate for $100, 1965 to 2016

Start with the inflation rate formula: 

CPI in 2016CPI in 1965 * 1965 USD value = 2016 USD value

Then plug in historical CPI values. The U.S. CPI was 31.5 in the year 1965 and 240.007 in 2016: 

240.00731.5 * $100 = $761.93

$100 in 1965 has the same "purchasing power" as $761.93 in 2016.

News headlines from 1965

Politics and news often influence economic performance. Here's what was happening at the time:
  • Aleksei Leonov, a Soviet cosmonaut, makes the first Spacewalk, when he leaves the Hos spacecraft for 12 minutes.
  • Winston Churchill, is given the largest state funeral ever, it takes place in St Paul's Cathedral, London.
  • The Supreme Court legalises the use of contraception by married couples.
  • France becomes the third nation in space, after launching its first satellite.
  • Lyndon B. Johnson, US President, signs the Voting Rights Act, making voting discrimination against minorities illegal.

Inflation Data Source

Raw data for these calculations comes from the Bureau of Labor Statistics(CPI), established in 1913. Inflation data from 1665 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University.
You may use the following MLA citation for this page: “1965 dollars in 2016 | Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 24 Dec. 2017,

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