$1 in 1980 → $0.79 in 1978

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$1 in 1980 → $0.79 in 1978

U.S. Inflation Rate, $1 in 1980 to 1978

According to the Bureau of Labor Statistics consumer price index, prices in 1978 are 20.87% lower than average prices throughout 1980. The dollar experienced an average inflation rate of 12.42% per year during this period, meaning the real value of a dollar decreased.

In other words, $1 in 1980 is equivalent in purchasing power to about $0.79 in 1978, a difference of $-0.21 over 2 years.

The 1978 inflation rate was 7.59%. The inflation rate in 1980 was 13.50%. The 1980 inflation rate is higher compared to the average inflation rate of 2.95% per year between 1980 and 2019.


Inflation from 1980 to 1978
Cumulative price change -20.87%
Average inflation rate 12.42%
Converted amount ($1 base) $0.79
Price difference ($1 base) $-0.21
CPI in 1980 82.400
CPI in 1978 65.200
Inflation in 1978 7.59%
Inflation in 1980 13.50%

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

Buying power of $1 in 1978

This chart shows calculation of buying power equivalence, often referred to as "the value of a dollar" over time for $1 in 1978 (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
1978 $1.00 7.59%
1979 $1.11 11.35%
1980 $1.26 13.50%
1981 $1.39 10.32%
1982 $1.48 6.16%
1983 $1.53 3.21%
1984 $1.59 4.32%
1985 $1.65 3.56%
1986 $1.68 1.86%
1987 $1.74 3.65%
1988 $1.81 4.14%
1989 $1.90 4.82%
1990 $2.00 5.40%
1991 $2.09 4.21%
1992 $2.15 3.01%
1993 $2.22 2.99%
1994 $2.27 2.56%
1995 $2.34 2.83%
1996 $2.41 2.95%
1997 $2.46 2.29%
1998 $2.50 1.56%
1999 $2.56 2.21%
2000 $2.64 3.36%
2001 $2.72 2.85%
2002 $2.76 1.58%
2003 $2.82 2.28%
2004 $2.90 2.66%
2005 $3.00 3.39%
2006 $3.09 3.23%
2007 $3.18 2.85%
2008 $3.30 3.84%
2009 $3.29 -0.36%
2010 $3.34 1.64%
2011 $3.45 3.16%
2012 $3.52 2.07%
2013 $3.57 1.46%
2014 $3.63 1.62%
2015 $3.64 0.12%
2016 $3.68 1.26%
2017 $3.76 2.13%
2018 $3.85 2.44%
2019 $3.93 1.99%*
* 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 1980 to 1978 (figures shown are purchasing power equivalents of $1):

Dallas-Fort Worth, Texas experienced the highest rate of inflation during the 2 years between 1978 and 1980 (14.66%).

New York experienced the lowest rate of inflation during the 2 years between 1978 and 1980 (9.97%).

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 1980 would be equivalent to £0.75 in 1978, an absolute change of £-0.25 and a cumulative change of -25.26%.

In Canada, CA$1.00 in 1980 would be equivalent to CA$0.82 in 1978, an absolute change of CA$-0.18 and a cumulative change of -17.97%.

Compare these numbers to the US's overall absolute change of $-0.21 and total percent change of -20.87%.


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 1980 and 1978.

Compare these values to the overall average of 12.42% per year:

Category Avg Inflation (%) Total Inflation (%) $1 in 1978 → 1980
Food 9.74 20.43 1.20
Shelter 15.71 33.89 1.34
Energy 27.98 63.79 1.64
Apparel 5.72 11.76 1.12
New vehicles 0.00 0.00 1.00
Used cars and trucks 0.00 0.00 1.00
Transportation services 10.87 22.91 1.23
Medical care services 10.50 22.10 1.22
Medical care commodities 8.23 17.14 1.17

It's important to note that not all categories may be tracked since 1980. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $1, 1978 to 1980

This inflation calculator uses the following inflation rate formula:

CPI in 1978CPI in 1980
×
1980 USD value
=
1978 USD value

Then plug in historical CPI values. The U.S. CPI was 82.4 in the year 1980 and 65.2 in 1978:

65.282.4
×
$1
=
$0.79

$1 in 1980 has the same "purchasing power" or "buying power" as $0.79 in 1978.

To get the total inflation rate for the 2 years between 1978 and 1980, we use the following formula:

CPI in 1978 - CPI in 1980CPI in 1980
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

65.2 - 82.482.4
×
100
=
-21%

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 11.07% per year between 1980 and 1978 (vs all-CPI inflation of 12.42%), for an inflation total of 23.36%.

When using the core inflation measurement, $1 in 1980 is equivalent in buying power to $1.23 in 1978, a difference of $0.23. Recall that for All Items, the converted amount is $0.79 with a difference of $-0.21.

In 1980, core inflation was 7.31%.


News headlines from 1978

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

  • Princess Victoria is crowned Princess of Sweden.
  • Iranian protesters storm the Russian embassy in Iran.
  • Abdou Diouf is elected president of Senegal after being Prime Minister for ten years.
  • Cable News Network (CNN) is transmitted for the first time.
  • Saddam Hussein, President of Iraq, declares a holy war on Iran.

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 1980 → 1978 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 20 Jun. 2019, https://www.officialdata.org/1980-dollars-in-1978?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 1980 to 1978
Cumulative price change -20.87%
Average inflation rate 12.42%
Converted amount ($1 base) $0.79
Price difference ($1 base) $-0.21
CPI in 1980 82.400
CPI in 1978 65.200
Inflation in 1978 7.59%
Inflation in 1980 13.50%