I was talking to a gas station attendant in his 50s or 60s the other day and I said to him when an Orange pop and two chick o Stick Candy bars (yes they still make them) cost me over $7 total.
I said to him: "Remember when a bottle of pop was 15 to 17 cents?" He said, "Yes!"
That's one reason I thought it might be interesting for you to see what inflation has done over the years to the value of the dollar. However, it is imortant to realize that in other countries they didn't do as well and sometimes they had 100% inflation in a year or less which caused mass panic and many deaths directly and indirectly. So, managing to keep inflation generally speaking under around 4% on average is a mighty accomplishment which mostly only the U.S. has managed to do.
For example, our economy is presently doing the best of any nation on earth right now. This is a mighty accomplishment for the Fed by itself.
$100 in 1950 is worth $1,295.98 today
The U.S. dollar has lost 92% its value since 1950
$100 in 1950 is equivalent in purchasing power to about $1,295.98 today, an increase of $1,195.98 over 74 years. The dollar had an average inflation rate of 3.52% per year between 1950 and today, producing a cumulative price increase of 1,195.98%.
This means that today's prices are 12.96 times as high as average prices since 1950, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 7.716% of what it could buy back then.
The inflation rate in 1950 was 1.26%. The current inflation rate compared to the end of last year is now 3.48%. If this number holds, $100 today will be equivalent in buying power to $103.48 next year. The current inflation rate page gives more detail on the latest inflation rates.
Buying power of $100 in 1950
This chart shows a calculation of buying power equivalence for $100 in 1950 (price index tracking began in 1635).
For example, if you started with $100, you would need to end with $1,295.98 in order to "adjust" for inflation (sometimes refered to as "beating inflation").
When $100 is equivalent to $1,295.98 over time, that means that the "real value" of a single U.S. dollar decreases over time. In other words, a dollar will pay for fewer items at the store.
This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1950 dollars, the chart below shows how $100 is worth less over 74 years.
According to the Bureau of Labor Statistics, each of these USD amounts below is equal in terms of what it could buy at the time:
This conversion table shows various other 1950 amounts in today's dollars, based on the 1,195.98% change in prices:
| Initial value | Equivalent value |
|---|---|
| $1 dollar in 1950 | $12.96 dollars today |
| $5 dollars in 1950 | $64.80 dollars today |
| $10 dollars in 1950 | $129.60 dollars today |
| $50 dollars in 1950 | $647.99 dollars today |
| $100 dollars in 1950 | $1,295.98 dollars today |
| $500 dollars in 1950 | $6,479.92 dollars today |
| $1,000 dollars in 1950 | $12,959.83 dollars today |
| $5,000 dollars in 1950 | $64,799.17 dollars today |
| $10,000 dollars in 1950 | $129,598.34 dollars today |
| $50,000 dollars in 1950 | $647,991.70 dollars today |
| $100,000 dollars in 1950 | $1,295,983.40 dollars today |
| $500,000 dollars in 1950 | $6,479,917.01 dollars today |
| $1,000,000 dollars in 1950 | $12,959,834.02 dollars today |
Inflation by City
Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1950 to 2024 (figures shown are purchasing power equivalents of $100):
- San Francisco, California: 3.78% average rate, $100 → $1,562.29, cumulative change of 1,462.29%
- Seattle, Washington: 3.74% average rate, $100 → $1,515.32, cumulative change of 1,415.32%
- Boston, Massachusetts: 3.62% average rate, $100 → $1,390.64, cumulative change of 1,290.64%
- New York: 3.57% average rate, $100 → $1,336.19, cumulative change of 1,236.19%
- Atlanta, Georgia: 3.51% average rate, $100 → $1,284.89, cumulative change of 1,184.89%
- Philadelphia, Pennsylvania: 3.47% average rate, $100 → $1,250.65, cumulative change of 1,150.65%
- Chicago, Illinois: 3.40% average rate, $100 → $1,185.55, cumulative change of 1,085.55%
- Houston, Texas: 3.37% average rate, $100 → $1,162.54, cumulative change of 1,062.54%
- Detroit, Michigan: 3.36% average rate, $100 → $1,157.25, cumulative change of 1,057.25%
San Francisco, California experienced the highest rate of inflation during the 74 years between 1950 and 2024 (3.78%).
Detroit, Michigan experienced the lowest rate of inflation during the 74 years between 1950 and 2024 (3.36%).
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 £100.00 in 1950 would be equivalent to £4,294.35 in 2024, an absolute change of £4,194.35 and a cumulative change of 4,194.35%.
In Canada, CA$100.00 in 1950 would be equivalent to CA$1,272.10 in 2024, an absolute change of CA$1,172.10 and a cumulative change of 1,172.10%.
Compare these numbers to the US's overall absolute change of $1,195.98 and total percent change of 1,195.98%.
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.
This chart shows the average rate of inflation for select CPI categories between 1950 and 2024.
Compare these values to the overall average of 3.52% per year:
| Category | Avg Inflation (%) | Total Inflation (%) | $100 in 1950 → 2024 |
|---|---|---|---|
| Food and beverages | 3.99 | 1,707.08 | 1,807.08 |
| Housing | 4.25 | 2,072.48 | 2,172.48 |
| Apparel | 1.61 | 225.66 | 325.66 |
| Transportation | 3.39 | 1,077.35 | 1,177.35 |
| Medical care | 5.00 | 3,592.45 | 3,692.45 |
| Recreation | 1.36 | 172.70 | 272.70 |
| Education and communication | 1.74 | 257.36 | 357.36 |
| Other goods and services | 4.96 | 3,483.02 | 3,583.02 |
The graph below compares inflation in categories of goods over time. Click on a category such as "Food" to toggle it on or off:
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