According to the Bureau of Labor Statistics consumer price index, prices in 1963 are 2.86% lower than average prices throughout 1965. The dollar experienced an average inflation rate of 1.46% per year during this period, meaning the real value of a dollar decreased.

In other words, $1 in 1965 is equivalent in purchasing power to about $0.97 in 1963, a difference of $-0.03 over 2 years.

The 1963 inflation rate was 1.32%. The inflation rate in 1965 was 1.61%. The 1965 inflation rate is lower compared to the average inflation rate of 3.96% per year between 1965 and 2019.

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Cumulative price change | -2.86% |

Average inflation rate | 1.46% |

Converted amount ($1 base) | $0.97 |

Price difference ($1 base) | $-0.03 |

CPI in 1965 | 31.500 |

CPI in 1963 | 30.600 |

Inflation in 1963 | 1.32% |

Inflation in 1965 | 1.61% |

This chart shows calculation of buying power equivalence, often referred to as "the value of a dollar" over time for $1 in 1963 (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:

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1965 to 1963 (figures shown are purchasing power equivalents of $1):

**San Francisco, California**: 1.71% average rate, $1 → $1.03, cumulative change of 3.45%**Boston, Massachusetts**: 1.62% average rate, $1 → $1.03, cumulative change of 3.26%**New York**: 1.58% average rate, $1 → $1.03, cumulative change of 3.19%**Philadelphia, Pennsylvania**: 1.56% average rate, $1 → $1.03, cumulative change of 3.15%**Detroit, Michigan**: 1.56% average rate, $1 → $1.03, cumulative change of 3.15%**Atlanta, Georgia**: 1.45% average rate, $1 → $1.03, cumulative change of 2.92%**Houston, Texas**: 1.37% average rate, $1 → $1.03, cumulative change of 2.76%**Seattle, Washington**: 1.21% average rate, $1 → $1.02, cumulative change of 2.43%**Chicago, Illinois**: 0.87% average rate, $1 → $1.02, cumulative change of 1.74%

San Francisco, California experienced the highest rate of inflation during the 2 years between 1963 and 1965 (1.71%).

Chicago, Illinois experienced the lowest rate of inflation during the 2 years between 1963 and 1965 (0.87%).

Note that some locations showing 0% inflation may have not yet reported latest data.

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1965 would be equivalent to £0.92 in 1963, an absolute change of £-0.08 and a cumulative change of -7.53%.

In Canada, CA$1.00 in 1965 would be equivalent to CA$0.95 in 1963, an absolute change of CA$-0.05 and a cumulative change of -4.68%.

Compare these numbers to the US's overall absolute change of $-0.03 and total percent change of -2.86%.

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 1965 and 1963.

Compare these values to the overall average of 1.46% per year:

Category | Avg Inflation (%) | Total Inflation (%) | $1 in 1963 → 1965 |
---|---|---|---|

Food | 1.77 | 3.57 | 1.04 |

Shelter | 1.76 | 3.54 | 1.04 |

Energy | 0.70 | 1.40 | 1.01 |

Apparel | 0.91 | 1.82 | 1.02 |

New vehicles | 0.00 | 0.00 | 1.00 |

Used cars and trucks | 0.00 | 0.00 | 1.00 |

Transportation services | 3.02 | 6.14 | 1.06 |

Medical care services | 2.77 | 5.62 | 1.06 |

Medical care commodities | -0.23 | -0.45 | 1.00 |

It's important to note that not all categories may be tracked since 1965. This table and visualization use the earliest available data for each category.

This inflation calculator uses the following inflation rate formula:

CPI in 1963CPI in 1965

×

1965 USD value

=

1963 USD value

Then plug in historical CPI values. The U.S. CPI was 31.5 in the year 1965 and 30.6 in 1963:

30.631.5

×

$1

=

$1 in 1965 has the same "purchasing power" or "buying power" as $0.97 in 1963.

To get the total inflation rate for the 2 years between 1963 and 1965, we use the following formula:

CPI in 1963 - CPI in 1965CPI in 1965

×

100

=

Plugging in the values to this equation, we get:

30.6 - 31.531.5

×

100

=

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 1.46% per year between 1965 and 1963 (vs all-CPI inflation of 1.46%), for an inflation total of 2.95%.

When using the core inflation measurement, $1 in 1965 is equivalent in buying power to $1.03 in 1963, a difference of $0.03. Recall that for All Items, the converted amount is $0.97 with a difference of $-0.03.

In 1965, core inflation was 1.25%.

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

- Aleksei Leonov, a Soviet cosmonaut, makes the first Spacewalk, when he leaves the Hos spacecraft for 12 minutes.
- Winston Churchill, is given the largest state funeral ever, it takes place in St Paul's Cathedral, London.
- The Supreme Court legalises the use of contraception by married couples.
- France becomes the third nation in space, after launching its first satellite.
- Lyndon B. Johnson, US President, signs the Voting Rights Act, making voting discrimination against minorities illegal.

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: “$1 in 1965 → 1963 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 20 Sep. 2019, https://www.officialdata.org/1965-dollars-in-1963?amount=1.

Special thanks to QuickChart for providing downloadable chart images.

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

Cumulative price change | -2.86% |

Average inflation rate | 1.46% |

Converted amount ($1 base) | $0.97 |

Price difference ($1 base) | $-0.03 |

CPI in 1965 | 31.500 |

CPI in 1963 | 30.600 |

Inflation in 1963 | 1.32% |

Inflation in 1965 | 1.61% |