$1,000 in 1960 → $8,518.45 in 2018

Inflation Calculator

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U.S. Inflation Rate, $1,000 in 1960 to 2018

According to the Bureau of Labor Statistics consumer price index, prices in 2018 are 751.84% higher than prices in 1960. The dollar experienced an average inflation rate of 2.70% per year during this period.

In other words, $1,000 in 1960 is equivalent in purchasing power to $8,518.45 in 2018, a difference of $7,518.45 over 58 years.

The 1960 inflation rate was 1.72%. The current inflation rate (2017 to 2018) is now 2.70%1. If this number holds, $1,000 today will be equivalent to $1,026.99 next year. The current inflation rate page gives more detail on the latest official inflation rates.


Inflation from 1960 to 2018
Cumulative price change 751.84%
Average inflation rate 2.70%
Converted amount ($1,000 base) $8,518.45
Price difference ($1,000 base) $7,518.45
CPI in 1960 29.6
CPI in 2018 252.146
Inflation in 1960 1.72%
Inflation in 2018 2.70%


U.S. Inflation since 1913
Annual Rate, U.S. Bureau of Labor Statistics CPI

Buying power of $1,000 since 1960

This chart shows calculations of buying power equivalence over time for $1,000 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 USD Value Inflation Rate
1960 $1,000.00 1.72%
1961 $1,010.14 1.01%
1962 $1,020.27 1.00%
1963 $1,033.78 1.32%
1964 $1,047.30 1.31%
1965 $1,064.19 1.61%
1966 $1,094.59 2.86%
1967 $1,128.38 3.09%
1968 $1,175.68 4.19%
1969 $1,239.86 5.46%
1970 $1,310.81 5.72%
1971 $1,368.24 4.38%
1972 $1,412.16 3.21%
1973 $1,500.00 6.22%
1974 $1,665.54 11.04%
1975 $1,817.57 9.13%
1976 $1,922.30 5.76%
1977 $2,047.30 6.50%
1978 $2,202.70 7.59%
1979 $2,452.70 11.35%
1980 $2,783.78 13.50%
1981 $3,070.95 10.32%
1982 $3,260.14 6.16%
1983 $3,364.86 3.21%
1984 $3,510.14 4.32%
1985 $3,635.14 3.56%
1986 $3,702.70 1.86%
1987 $3,837.84 3.65%
1988 $3,996.62 4.14%
1989 $4,189.19 4.82%
1990 $4,415.54 5.40%
1991 $4,601.35 4.21%
1992 $4,739.86 3.01%
1993 $4,881.76 2.99%
1994 $5,006.76 2.56%
1995 $5,148.65 2.83%
1996 $5,300.68 2.95%
1997 $5,422.30 2.29%
1998 $5,506.76 1.56%
1999 $5,628.38 2.21%
2000 $5,817.57 3.36%
2001 $5,983.11 2.85%
2002 $6,077.70 1.58%
2003 $6,216.22 2.28%
2004 $6,381.76 2.66%
2005 $6,597.97 3.39%
2006 $6,810.81 3.23%
2007 $7,004.80 2.85%
2008 $7,273.75 3.84%
2009 $7,247.87 -0.36%
2010 $7,366.76 1.64%
2011 $7,599.29 3.16%
2012 $7,756.55 2.07%
2013 $7,870.17 1.46%
2014 $7,997.84 1.62%
2015 $8,007.33 0.12%
2016 $8,108.34 1.26%
2017 $8,281.08 2.13%
2018 $8,518.45 2.87%*
* 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 2018 (figures shown are purchasing power equivalents of $1,000):

  • San Francisco, California: 4.04% average rate, $1,000 → $9,935.69, cumulative change of 893.57%
  • Seattle, Washington: 3.93% average rate, $1,000 → $9,378.56, cumulative change of 837.86%
  • Boston, Massachusetts: 3.91% average rate, $1,000 → $9,227.41, cumulative change of 822.74%
  • New York: 3.87% average rate, $1,000 → $9,045.61, cumulative change of 804.56%
  • Philadelphia, Pennsylvania: 3.70% average rate, $1,000 → $8,212.43, cumulative change of 721.24%
  • Houston, Texas: 3.67% average rate, $1,000 → $8,096.65, cumulative change of 709.67%
  • Atlanta, Georgia: 3.66% average rate, $1,000 → $8,043.58, cumulative change of 704.36%
  • Chicago, Illinois: 3.61% average rate, $1,000 → $7,822.39, cumulative change of 682.24%
  • Detroit, Michigan: 3.61% average rate, $1,000 → $7,818.55, cumulative change of 681.85%

San Francisco, California experienced the highest rate of inflation during the 58 years between 1960 and 2018 (4.04%).

Detroit, Michigan experienced the lowest rate of inflation during the 58 years between 1960 and 2018 (3.61%).


Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1,000.00 in 1960 would be equivalent to £22,368.06 in 2018, an absolute change of £21,368.06 and a cumulative change of 2,136.81%.

In Canada, CA$1,000.00 in 1960 would be equivalent to CA$8,490.45 in 2018, an absolute change of CA$7,490.45 and a cumulative change of 749.04%.

Compare these numbers to the US's overall absolute change of $7,518.45 and total percent change of 751.84%.


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 2018.

Compare these values to the overall average of 2.70% per year:

Category Avg Inflation (%) Total Inflation (%) $1,000 in 1960 → 2018
Food 3.74 743.05 8,430.50
Shelter 4.40 1,113.43 12,134.33
Energy 4.01 877.59 9,775.88
Apparel 1.76 175.12 2,751.21
New vehicles 1.05 83.68 1,836.84
Used cars and trucks 0.61 42.63 1,426.25
Transportation services 3.35 574.21 6,742.08
Medical care services 5.81 2,550.36 26,503.57
Medical care commodities 4.29 1,041.40 11,413.96

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 $1,000 since 1960

This inflation calculator uses the following inflation rate formula:

CPI in 2018CPI in 1960
×
1960 USD value
=
2018 USD value

Then plug in historical CPI values. The U.S. CPI was 29.6 in the year 1960 and 252.146 in 2018:

252.14629.6
×
$1,000
=
$8,518.45

$1,000 in 1960 has the same "purchasing power" or "buying power" as $8,518.45 in 2018.

To get the total inflation rate for the 58 years between 1960 and 2018, we use the following formula:

CPI in 2018 - CPI in 1960CPI in 1960
×
100
=
Cumulative inflation rate (58 years)

Plugging in the values to this equation, we get:

252.146 - 29.629.6
×
100
=
752%

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 3.73% per year between 1960 and 2018 (vs all-CPI inflation of 2.70%), for an inflation total of 737.89%.

When using the core inflation measurement, $1,000 in 1960 is equivalent in buying power to $8,378.92 in 2018, a difference of $7,378.92. Recall that for All Items, the converted amount is $8,518.45 with a difference of $7,518.45.

In 1960, core inflation was 1.55%.


Comparison to S&P 500 Index

The average inflation rate of 2.70% during these years has a compounding effect. As noted above, this yearly inflation rate produces an overall price difference of 751.84% over 58 years.

To help put this inflation into perspective, if you had invested $1,000 in the S&P 500 index in 1960, your investment would be worth approximately $278,097.22 in 2018. This is a change of 27,709.72%.

This means the nominal return on a $1,000 investment is $277,097.22, but inflation would eat into your real returns.

Inflation would account for 88.26% of your returns ($244,568.14), for an inflation-adjusted real return of about $32,529.08.


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: “$1,000 in 1960 → 2018 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 18 Oct. 2018, https://www.officialdata.org/1960-dollars?amount=1000.

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


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