The reason people thought our nation might go bankrupt then was incredible amounts of money were completely wasted on the Viet Nam War which also killed over there 50,000 of our boys and then millions came home with PTSD and many never survived even the next few years after they left the service. You even have people in their 70s now on the streets still with PTSD from Viet Nam war even today. This is very personal for me because more boys my exact age died in the Viet Nam War than any other age.
Here is the article on inflation regarding 1981 and 1982:
Begin quote from:
https://www.in2013dollars.com/inflation-rate-in-1982#:~:text=The%20inflation%20rate%20in%201982,consumer%20price%20index%20(CPI).
U.S. inflation rate in 1982: 6.16%
Inflation in 1982 and its effect on dollar value
$1 in 1981 is equivalent in purchasing power to about $1.06 in 1982. The dollar had an average inflation rate of 6.16% per year between 1981 and 1982, producing a cumulative price increase of 6.16%. Purchasing power decreased by 6.16% in 1982 compared to 1981. On average, you would have to spend 6.16% more money in 1982 than in 1981 for the same item.
This means that prices in 1982 are 1.06 times higher than average prices since 1981, according to the Bureau of Labor Statistics consumer price index.
The inflation rate in 1981 was 10.32%. The inflation rate in 1982 was 6.16%. The 1982 inflation rate is higher compared to the average inflation rate of 2.73% per year between 1982 and 2022.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1982 was 96.50. It was 90.90 in the previous year, 1981. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.
Inflation by City
Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1981 to 1982 (figures shown are purchasing power equivalents of $1):
- San Francisco, California: 8.20% average rate, $1 → $1.08, cumulative change of 8.20%
- Miami-Fort Lauderdale, Florida: 7.30% average rate, $1 → $1.07, cumulative change of 7.30%
- Houston, Texas: 7.18% average rate, $1 → $1.07, cumulative change of 7.18%
- Seattle, Washington: 6.93% average rate, $1 → $1.07, cumulative change of 6.93%
- Chicago, Illinois: 6.82% average rate, $1 → $1.07, cumulative change of 6.82%
- Atlanta, Georgia: 6.61% average rate, $1 → $1.07, cumulative change of 6.61%
- Dallas-Fort Worth, Texas: 6.04% average rate, $1 → $1.06, cumulative change of 6.04%
- New York: 5.78% average rate, $1 → $1.06, cumulative change of 5.78%
- Philadelphia, Pennsylvania: 4.86% average rate, $1 → $1.05, cumulative change of 4.86%
- Boston, Massachusetts: 4.28% average rate, $1 → $1.04, cumulative change of 4.28%
- Detroit, Michigan: 4.05% average rate, $1 → $1.04, cumulative change of 4.05%
San Francisco, California experienced the highest rate of inflation during the 1 years between 1981 and 1982 (8.20%).
Detroit, Michigan experienced the lowest rate of inflation during the 1 years between 1981 and 1982 (4.05%).
Note that some locations showing 0% inflation may have not yet reported latest data.
Inflation by Country
Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1981 would be equivalent to £1.09 in 1982, an absolute change of £0.09 and a cumulative change of 8.61%.
In Canada, CA$1.00 in 1981 would be equivalent to CA$1.11 in 1982, an absolute change of CA$0.11 and a cumulative change of 10.77%.
Compare these numbers to the US's overall absolute change of $0.06 and total percent change of 6.16%.
Inflation by Spending Category
CPI is the weighted combination of many categories of spending that are tracked by the government. Breaking down these categories helps explain the main drivers behind price changes.
Between 1981 and 1982:
- Gas prices increased from $1.30 per gallon to $1.36
- Bread prices increased from $0.53 per loaf to $0.54
- Egg prices increased from $0.94 per carton to $0.93
- Chicken prices increased from $0.75 per per 1 lb of whole chicken to $0.71
- Electricity prices increased from $0.06 per KwH to $0.07
This chart shows the average rate of inflation for select CPI categories between 1981 and 1982.
Compare these values to the overall average of 6.16% per year:
| Category | Avg Inflation (%) | Total Inflation (%) | $1 in 1981 → 1982 |
|---|---|---|---|
| Food and beverages | 4.05 | 4.05 | 1.04 |
| Housing | 7.21 | 7.21 | 1.07 |
| Apparel | 2.62 | 2.62 | 1.03 |
| Transportation | 4.12 | 4.12 | 1.04 |
| Medical care | 11.60 | 11.60 | 1.12 |
| Recreation | 0.00 | 0.00 | 1.00 |
| Education and communication | 0.00 | 0.00 | 1.00 |
| Other goods and services | 10.27 | 10.27 | 1.10 |
For all these visualizations, it's important to note that not all categories may have been tracked since 1981. This table and charts use the earliest available data for each category.
How to calculate inflation rate for $1, 1981 to 1982
Our calculations use the following inflation rate formula to calculate the change in value between 1981 and 1982:
Then plug in historical CPI values. The U.S. CPI was 90.9 in the year 1981 and 96.5 in 1982:
$1 in 1981 has the same "purchasing power" or "buying power" as $1.06 in 1982.
To get the total inflation rate for the 1 years between 1981 and 1982, we use the following formula:
Plugging in the values to this equation, we get:
Alternate Measurements of Inflation
The above data describe the CPI for all items. Also of note is the Core CPI, which measures inflation for all items except for the more volatile categories of food and energy. Core inflation averaged 7.40% per year between 1981 and 1982 (vs all-CPI inflation of 6.16%), for an inflation total of 7.40%.
When using the core inflation measurement, $1 in 1981 is equivalent in buying power to $1.07 in 1982, a difference of $0.07. Recall that for All Items, the converted amount is $1.06 with a difference of $0.06.
In 1981, core inflation was 10.46%.
Comparison to S&P 500 Index
To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 1981, our investment would be nominally worth approximately $1.21 in 1982. This is a return on investment of 20.72%, with an absolute return of $0.21 on top of the original $1.
These numbers are not inflation adjusted, so they are considered nominal. In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account.
The compounding effect of inflation would account for 5.80% of returns ($0.07) during this period. This means the inflation-adjusted real return of our $1 investment is $0.14. You may also want to account for capital gains tax, which would take your real return down to around $0 for most people.
| Original Amount | Final Amount | Change | |
|---|---|---|---|
| Nominal | $1 | $1.21 | 20.72% |
| Real Inflation Adjusted | $1 | $1.14 | 13.71% |
Information displayed above may differ slightly from other S&P 500 calculators. Minor discrepancies can occur because we use the latest CPI data for inflation, annualized inflation numbers for previous years, and we compute S&P price and dividends from January of 1981 to latest available data for 1982 using average monthly close price.
For more details on the S&P 500 between 1981 and 1982, see the stock market returns calculator.
Data source & citation
Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (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: “Inflation Rate in 1982 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 23 Mar. 2022, https://www.officialdata.org/inflation-rate-in-1982.
Special thanks to QuickChart for their chart image API, which is used for chart downloads.
in2013dollars.com is a reference website maintained by the Official Data Foundation.
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