$60,000 in 1888 → $1,515,833.68 in 2016

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U.S. Inflation Rate, $60,000 in 1888 to 2016

According to the Bureau of Labor Statistics consumer price index, prices in 2016 are 2,426.39% higher than average prices throughout 1888. The dollar experienced an average inflation rate of 2.56% per year during this period.

In other words, $60,000 in 1888 is equivalent in purchasing power to $1,515,833.68 in 2016, a difference of $1,455,833.68 over 128 years.

The 1888 inflation rate was 0.00%. The inflation rate in 2016 was 1.26%. The 2016 inflation rate is lower compared to the average inflation rate of 1.60% per year between 2016 and 2019.


Inflation from 1888 to 2016
Cumulative price change 2,426.39%
Average inflation rate 2.56%
Converted amount ($60,000 base) $1,515,833.68
Price difference ($60,000 base) $1,455,833.68
CPI in 1888 9.500
CPI in 2016 240.007
Inflation in 1888 0.00%
Inflation in 2016 1.26%


U.S. inflation chart since 1665


Buying power of $60,000 in 1888

This chart shows calculations of buying power equivalence over time for $60,000 in 1888 (price index tracking began in 1635).

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:

Year USD Value Inflation Rate
1888 $60,000.00 -
1889 $58,105.26 -3.16%
1890 $57,473.68 -1.09%
1891 $57,473.68 0.00%
1892 $57,473.68 0.00%
1893 $56,842.11 -1.10%
1894 $54,315.79 -4.44%
1895 $53,052.63 -2.33%
1896 $53,052.63 0.00%
1897 $52,421.05 -1.19%
1898 $52,421.05 0.00%
1899 $52,421.05 0.00%
1900 $53,052.63 1.20%
1901 $53,684.21 1.19%
1902 $54,315.79 1.18%
1903 $55,578.95 2.33%
1904 $56,210.53 1.14%
1905 $55,578.95 -1.12%
1906 $56,842.11 2.27%
1907 $59,368.42 4.44%
1908 $58,105.26 -2.13%
1909 $57,473.68 -1.09%
1910 $60,000.00 4.40%
1911 $60,000.00 0.00%
1912 $61,263.16 2.11%
1913 $62,526.32 2.06%
1914 $63,157.89 1.01%
1915 $63,789.47 1.00%
1916 $68,842.11 7.92%
1917 $80,842.11 17.43%
1918 $95,368.42 17.97%
1919 $109,263.16 14.57%
1920 $126,315.79 15.61%
1921 $113,052.63 -10.50%
1922 $106,105.26 -6.15%
1923 $108,000.00 1.79%
1924 $108,000.00 0.00%
1925 $110,526.32 2.34%
1926 $111,789.47 1.14%
1927 $109,894.74 -1.69%
1928 $108,000.00 -1.72%
1929 $108,000.00 0.00%
1930 $105,473.68 -2.34%
1931 $96,000.00 -8.98%
1932 $86,526.32 -9.87%
1933 $82,105.26 -5.11%
1934 $84,631.58 3.08%
1935 $86,526.32 2.24%
1936 $87,789.47 1.46%
1937 $90,947.37 3.60%
1938 $89,052.63 -2.08%
1939 $87,789.47 -1.42%
1940 $88,421.05 0.72%
1941 $92,842.11 5.00%
1942 $102,947.37 10.88%
1943 $109,263.16 6.13%
1944 $111,157.89 1.73%
1945 $113,684.21 2.27%
1946 $123,157.89 8.33%
1947 $140,842.11 14.36%
1948 $152,210.53 8.07%
1949 $150,315.79 -1.24%
1950 $152,210.53 1.26%
1951 $164,210.53 7.88%
1952 $167,368.42 1.92%
1953 $168,631.58 0.75%
1954 $169,894.74 0.75%
1955 $169,263.16 -0.37%
1956 $171,789.47 1.49%
1957 $177,473.68 3.31%
1958 $182,526.32 2.85%
1959 $183,789.47 0.69%
1960 $186,947.37 1.72%
1961 $188,842.11 1.01%
1962 $190,736.84 1.00%
1963 $193,263.16 1.32%
1964 $195,789.47 1.31%
1965 $198,947.37 1.61%
1966 $204,631.58 2.86%
1967 $210,947.37 3.09%
1968 $219,789.47 4.19%
1969 $231,789.47 5.46%
1970 $245,052.63 5.72%
1971 $255,789.47 4.38%
1972 $264,000.00 3.21%
1973 $280,421.05 6.22%
1974 $311,368.42 11.04%
1975 $339,789.47 9.13%
1976 $359,368.42 5.76%
1977 $382,736.84 6.50%
1978 $411,789.47 7.59%
1979 $458,526.32 11.35%
1980 $520,421.05 13.50%
1981 $574,105.26 10.32%
1982 $609,473.68 6.16%
1983 $629,052.63 3.21%
1984 $656,210.53 4.32%
1985 $679,578.95 3.56%
1986 $692,210.53 1.86%
1987 $717,473.68 3.65%
1988 $747,157.89 4.14%
1989 $783,157.89 4.82%
1990 $825,473.68 5.40%
1991 $860,210.53 4.21%
1992 $886,105.26 3.01%
1993 $912,631.58 2.99%
1994 $936,000.00 2.56%
1995 $962,526.32 2.83%
1996 $990,947.37 2.95%
1997 $1,013,684.21 2.29%
1998 $1,029,473.68 1.56%
1999 $1,052,210.53 2.21%
2000 $1,087,578.95 3.36%
2001 $1,118,526.32 2.85%
2002 $1,136,210.53 1.58%
2003 $1,162,105.26 2.28%
2004 $1,193,052.63 2.66%
2005 $1,233,473.68 3.39%
2006 $1,273,263.16 3.23%
2007 $1,309,528.42 2.85%
2008 $1,359,808.42 3.84%
2009 $1,354,970.53 -0.36%
2010 $1,377,195.79 1.64%
2011 $1,420,667.37 3.16%
2012 $1,450,067.37 2.07%
2013 $1,471,307.37 1.46%
2014 $1,495,174.74 1.62%
2015 $1,496,949.47 0.12%
2016 $1,515,833.68 1.26%
2017 $1,548,126.32 2.13%
2018 $1,585,937.89 2.44%
2019 $1,589,760.00 0.24%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £60,000.00 in 1888 would be equivalent to £7,156,551.72 in 2016, an absolute change of £7,096,551.72 and a cumulative change of 11,827.59%.

Compare these numbers to the US's overall absolute change of $1,455,833.68 and total percent change of 2,426.39%.


Inflation by Spending Category

CPI is the weighted combination of many categories of spending that are tracked by the government. This chart shows the average rate of inflation for select CPI categories between 1888 and 2016.

Compare these values to the overall average of 2.56% per year:

Category Avg Inflation (%) Total Inflation (%) $60,000 in 1888 → 2016
Food 3.17 5,356.68 3,274,010.22
Shelter 4.13 17,706.18 10,683,710.51
Energy 3.76 11,159.76 6,755,857.87
Apparel 2.09 1,320.44 852,264.29
New vehicles 1.14 324.95 254,971.94
Used cars and trucks 0.76 164.64 158,784.29
Transportation services 4.07 16,469.63 9,941,780.31
Medical care services 5.18 64,097.29 38,518,371.73
Medical care commodities 3.07 4,690.18 2,874,105.30

It's important to note that not all categories may be tracked since 1888. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $60,000, 1888 to 2016

This inflation calculator uses the following inflation rate formula:

CPI in 2016CPI in 1888
×
1888 USD value
=
2016 USD value

Then plug in historical CPI values. The U.S. CPI was 9.5 in the year 1888 and 240.007 in 2016:

240.0079.5
×
$60,000
=
$1,515,833.68

$60,000 in 1888 has the same "purchasing power" or "buying power" as $1,515,833.68 in 2016.

To get the total inflation rate for the 128 years between 1888 and 2016, we use the following formula:

CPI in 2016 - CPI in 1888CPI in 1888
×
100
=
Cumulative inflation rate (128 years)

Plugging in the values to this equation, we get:

240.007 - 9.59.5
×
100
=
2,426%

Comparison to S&P 500 Index

The average inflation rate of 2.56% has a compounding effect between 1888 and 2016. As noted above, this yearly inflation rate compounds to produce an overall price difference of 2,426.39% over 128 years.

To help put this inflation into perspective, if we had invested $60,000 in the S&P 500 index in 1888, our investment would be nominally worth approximately $5,550,462,267.07 in 2016. This is a return on investment of 9,250,670.45%, with an absolute return of $5,550,402,267.07.

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 96.04% of returns ($5,330,705,251.82) during this period. This means the inflation-adjusted real return of our $60,000 investment is $219,697,015.24.

Investment in S&P 500 Index, 1888-2016
Original Amount Final Amount Change
Nominal $60,000 $5,550,462,267.07 9,250,670.45%
Real
Inflation Adjusted
$60,000 $219,697,015.24 366,161.69%


News headlines from 1888

Politics and news often influence economic performance. Here's what was happening at the time:

  • The National Geographic Society is founded in Washington.
  • The Constantinople Convention is signed: it guarantees free maritime passage through the Suez Canal during war and peace.
  • Handel's Israel in Egypt on wax cylinder becomes first known recording of classical music
  • In a State Emigrant Hospital, New York, Edith Eleanor McLean becomes the first baby to be placed in an incubator
  • Vincent van Gogh, Dutch painter, cuts off his ear and sends it to a prostitute for safe keeping

Data Source & Citation

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: “$60,000 in 1888 → 2016 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 20 Feb. 2019, https://www.officialdata.org/1888-dollars-in-2016?amount=60000.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


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