$1 in 1960 → $1.02 in 1962

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$1 in 1960 → $1.02 in 1962

U.S. Inflation Rate, $1 in 1960 to 1962

According to the Bureau of Labor Statistics consumer price index, prices in 1962 are 2.03% higher than average prices throughout 1960. The dollar experienced an average inflation rate of 1.01% per year during this period, meaning the real value of a dollar decreased.

In other words, $1 in 1960 is equivalent in purchasing power to about $1.02 in 1962, a difference of $0.02 over 2 years.

The 1960 inflation rate was 1.72%. The inflation rate in 1962 was 1.00%. The 1962 inflation rate is lower compared to the average inflation rate of 3.82% per year between 1962 and 2019.


Inflation from 1960 to 1962
Cumulative price change 2.03%
Average inflation rate 1.01%
Converted amount ($1 base) $1.02
Price difference ($1 base) $0.02
CPI in 1960 29.600
CPI in 1962 30.200
Inflation in 1960 1.72%
Inflation in 1962 1.00%

USD Inflation since 1913
Annual Rate, U.S. Bureau of Labor Statistics CPI
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Buying power of $1 in 1960

This chart shows calculation of buying power equivalence, often referred to as "the value of a dollar" over time for $1 in 1960 (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 Dollar Value Inflation Rate
1960 $1.00 1.72%
1961 $1.01 1.01%
1962 $1.02 1.00%
1963 $1.03 1.32%
1964 $1.05 1.31%
1965 $1.06 1.61%
1966 $1.09 2.86%
1967 $1.13 3.09%
1968 $1.18 4.19%
1969 $1.24 5.46%
1970 $1.31 5.72%
1971 $1.37 4.38%
1972 $1.41 3.21%
1973 $1.50 6.22%
1974 $1.67 11.04%
1975 $1.82 9.13%
1976 $1.92 5.76%
1977 $2.05 6.50%
1978 $2.20 7.59%
1979 $2.45 11.35%
1980 $2.78 13.50%
1981 $3.07 10.32%
1982 $3.26 6.16%
1983 $3.36 3.21%
1984 $3.51 4.32%
1985 $3.64 3.56%
1986 $3.70 1.86%
1987 $3.84 3.65%
1988 $4.00 4.14%
1989 $4.19 4.82%
1990 $4.42 5.40%
1991 $4.60 4.21%
1992 $4.74 3.01%
1993 $4.88 2.99%
1994 $5.01 2.56%
1995 $5.15 2.83%
1996 $5.30 2.95%
1997 $5.42 2.29%
1998 $5.51 1.56%
1999 $5.63 2.21%
2000 $5.82 3.36%
2001 $5.98 2.85%
2002 $6.08 1.58%
2003 $6.22 2.28%
2004 $6.38 2.66%
2005 $6.60 3.39%
2006 $6.81 3.23%
2007 $7.00 2.85%
2008 $7.27 3.84%
2009 $7.25 -0.36%
2010 $7.37 1.64%
2011 $7.60 3.16%
2012 $7.76 2.07%
2013 $7.87 1.46%
2014 $8.00 1.62%
2015 $8.01 0.12%
2016 $8.11 1.26%
2017 $8.28 2.13%
2018 $8.48 2.44%
2019 $8.67 2.18%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1960 to 1962 (figures shown are purchasing power equivalents of $1):

Boston, Massachusetts experienced the highest rate of inflation during the 2 years between 1960 and 1962 (1.84%).

Detroit, Michigan experienced the lowest rate of inflation during the 2 years between 1960 and 1962 (0.43%).

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 1960 would be equivalent to £1.08 in 1962, an absolute change of £0.08 and a cumulative change of 7.94%.

In Canada, CA$1.00 in 1960 would be equivalent to CA$1.02 in 1962, an absolute change of CA$0.02 and a cumulative change of 1.91%.

Compare these numbers to the US's overall absolute change of $0.02 and total percent change of 2.03%.


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 1960 and 1962.

Compare these values to the overall average of 1.01% per year:

Category Avg Inflation (%) Total Inflation (%) $1 in 1960 → 1962
Food 1.02 2.05 1.02
Shelter 0.99 1.98 1.02
Energy 0.32 0.63 1.01
Apparel 0.67 1.35 1.01
New vehicles 0.00 0.00 1.00
Used cars and trucks 0.00 0.00 1.00
Transportation services 1.89 3.82 1.04
Medical care services 3.49 7.10 1.07
Medical care commodities -1.42 -2.82 0.97

It's important to note that not all categories may be tracked since 1960. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $1, 1960 to 1962

This inflation calculator uses the following inflation rate formula:

CPI in 1962CPI in 1960
×
1960 USD value
=
1962 USD value

Then plug in historical CPI values. The U.S. CPI was 29.6 in the year 1960 and 30.2 in 1962:

30.229.6
×
$1
=
$1.02

$1 in 1960 has the same "purchasing power" or "buying power" as $1.02 in 1962.

To get the total inflation rate for the 2 years between 1960 and 1962, we use the following formula:

CPI in 1962 - CPI in 1960CPI in 1960
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

30.2 - 29.629.6
×
100
=
2%

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 1.25% per year between 1960 and 1962 (vs all-CPI inflation of 1.01%), for an inflation total of 2.51%.

When using the core inflation measurement, $1 in 1960 is equivalent in buying power to $1.03 in 1962, a difference of $0.03. Recall that for All Items, the converted amount is $1.02 with a difference of $0.02.

In 1960, core inflation was 1.50%.


Comparison to S&P 500 Index

The average inflation rate of 1.01% has a compounding effect between 1960 and 1962. As noted above, this yearly inflation rate compounds to produce an overall price difference of 2.03% over 2 years.

To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 1960, our investment would be nominally worth approximately $1.24 in 1962. This is a return on investment of 23.57%, with an absolute return of $0.24.

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 1.99% of returns ($0.00) during this period. This means the inflation-adjusted real return of our $1 investment is $0.23.

Investment in S&P 500 Index, 1960-1962
Original Amount Final Amount Change
Nominal $1 $1.24 23.57%
Real
Inflation Adjusted
$1 $0.23 23.10%


News headlines from 1960

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

  • Johnny Cash plays his first concert in a prison.
  • The Bank of France issues new franc currency, worth 100 times the value of old francs.
  • France grants independence to Cameroon (previously French Cameroon) after years of fighting.
  • Guided missiles are launched for the first time from a nuclear powered submarine

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: “$1 in 1960 → 1962 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 23 Aug. 2019, https://www.officialdata.org/1960-dollars-in-1962?amount=1.

Special thanks to QuickChart for providing downloadable chart images.

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


» Read more about inflation and investment.

Inflation from 1960 to 1962
Cumulative price change 2.03%
Average inflation rate 1.01%
Converted amount ($1 base) $1.02
Price difference ($1 base) $0.02
CPI in 1960 29.600
CPI in 1962 30.200
Inflation in 1960 1.72%
Inflation in 1962 1.00%
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