$63,000,000,000 in 1985 → $140,524,544,609.67 in 2016

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$63,000,000,000 in 1985 → $140,524,544,609.67 in 2016

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U.S. Inflation Rate, $63,000,000,000 in 1985 to 2016

According to the Bureau of Labor Statistics consumer price index, prices in 2016 are 123.05% higher than average prices throughout 1985. The dollar experienced an average inflation rate of 2.62% per year during this period, meaning the real value of a dollar decreased.

In other words, $63,000,000,000 in 1985 is equivalent in purchasing power to about $140,524,544,609.67 in 2016, a difference of $77,524,544,609.67 over 31 years.

The 1985 inflation rate was 3.56%. The inflation rate in 2016 was 1.26%. The 2016 inflation rate is lower compared to the average inflation rate of 2.25% per year between 2016 and 2019.


Inflation from 1985 to 2016
Cumulative price change 123.05%
Average inflation rate 2.62%
Converted amount ($63,000,000,000 base) $140,524,544,609.67
Price difference ($63,000,000,000 base) $77,524,544,609.67
CPI in 1985 107.600
CPI in 2016 240.007
Inflation in 1985 3.56%
Inflation in 2016 1.26%

USD Inflation since 1913
Annual Rate, U.S. Bureau of Labor Statistics CPI
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Buying power of $63,000,000,000 in 1985

This chart shows calculation of buying power equivalence, often referred to as "the value of a dollar" over time for $63,000,000,000 in 1985 (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
1985 $63,000,000,000.00 3.56%
1986 $64,171,003,717.47 1.86%
1987 $66,513,011,152.42 3.65%
1988 $69,264,869,888.48 4.14%
1989 $72,602,230,483.27 4.82%
1990 $76,525,092,936.80 5.40%
1991 $79,745,353,159.85 4.21%
1992 $82,145,910,780.67 3.01%
1993 $84,605,018,587.36 2.99%
1994 $86,771,375,464.68 2.56%
1995 $89,230,483,271.38 2.83%
1996 $91,865,241,635.69 2.95%
1997 $93,973,048,327.14 2.29%
1998 $95,436,802,973.98 1.56%
1999 $97,544,609,665.43 2.21%
2000 $100,823,420,074.35 3.36%
2001 $103,692,379,182.16 2.85%
2002 $105,331,784,386.62 1.58%
2003 $107,732,342,007.43 2.28%
2004 $110,601,301,115.24 2.66%
2005 $114,348,513,011.15 3.39%
2006 $118,037,174,721.19 3.23%
2007 $121,399,126,394.05 2.85%
2008 $126,060,306,691.45 3.84%
2009 $125,611,812,267.66 -0.36%
2010 $127,672,193,308.55 1.64%
2011 $131,702,202,602.23 3.16%
2012 $134,427,713,754.65 2.07%
2013 $136,396,756,505.58 1.46%
2014 $138,609,368,029.74 1.62%
2015 $138,773,894,052.04 0.12%
2016 $140,524,544,609.67 1.26%
2017 $143,518,215,613.38 2.13%
2018 $147,023,517,657.99 2.44%
2019 $150,215,185,873.61 2.17%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 25 more rows

Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1985 to 2016 (figures shown are purchasing power equivalents of $63,000,000,000):

  • San Diego, California: 3.46% average rate, $63,000,000,000 → $181,086,114,333.06, cumulative change of 187.44%
  • San Francisco, California: 2.94% average rate, $63,000,000,000 → $154,904,209,796.67, cumulative change of 145.88%
  • New York: 2.90% average rate, $63,000,000,000 → $152,628,499,041.78, cumulative change of 142.27%
  • Seattle, Washington: 2.88% average rate, $63,000,000,000 → $152,106,284,360.19, cumulative change of 141.44%
  • Boston, Massachusetts: 2.84% average rate, $63,000,000,000 → $150,231,479,615.21, cumulative change of 138.46%
  • Miami-Fort Lauderdale, Florida: 2.79% average rate, $63,000,000,000 → $147,923,802,507.84, cumulative change of 134.80%
  • Denver, Colorado: 2.73% average rate, $63,000,000,000 → $145,084,117,647.06, cumulative change of 130.29%
  • Philadelphia, Pennsylvania: 2.66% average rate, $63,000,000,000 → $142,027,398,866.07, cumulative change of 125.44%
  • Minneapolis-St Paul, Minnesota: 2.56% average rate, $63,000,000,000 → $137,861,074,766.36, cumulative change of 118.83%
  • Chicago, Illinois: 2.47% average rate, $63,000,000,000 → $134,121,565,183.75, cumulative change of 112.89%
  • Detroit, Michigan: 2.39% average rate, $63,000,000,000 → $130,941,379,767.57, cumulative change of 107.84%
  • Atlanta, Georgia: 2.38% average rate, $63,000,000,000 → $130,586,570,048.31, cumulative change of 107.28%
  • St Louis, Missouri: 2.37% average rate, $63,000,000,000 → $130,043,823,529.41, cumulative change of 106.42%
  • Houston, Texas: 2.36% average rate, $63,000,000,000 → $129,961,803,005.01, cumulative change of 106.29%
  • Dallas-Fort Worth, Texas: 2.33% average rate, $63,000,000,000 → $128,531,565,874.73, cumulative change of 104.02%

San Diego, California experienced the highest rate of inflation during the 31 years between 1985 and 2016 (3.46%).

Dallas-Fort Worth, Texas experienced the lowest rate of inflation during the 31 years between 1985 and 2016 (2.33%).

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 £63,000,000,000.00 in 1985 would be equivalent to £175,174,437,299.04 in 2016, an absolute change of £112,174,437,299.04 and a cumulative change of 178.05%.

In Canada, CA$63,000,000,000.00 in 1985 would be equivalent to CA$126,196,567,862.71 in 2016, an absolute change of CA$63,196,567,862.71 and a cumulative change of 100.31%.

Compare these numbers to the US's overall absolute change of $77,524,544,609.67 and total percent change of 123.05%.


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 1985 and 2016.

Compare these values to the overall average of 2.62% per year:

Category Avg Inflation (%) Total Inflation (%) $63,000,000,000 in 1985 → 2016
Food 2.79 134.85 147,956,629,262.61
Shelter 3.16 162.47 165,354,700,196.13
Energy 2.03 86.59 117,549,438,700.15
Apparel 0.59 20.02 75,610,566,908.37
New vehicles 1.07 38.93 87,525,650,534.25
Used cars and trucks 0.75 26.20 79,505,408,970.98
Transportation services 3.28 172.21 171,490,009,090.91
Medical care services 4.87 337.16 275,411,652,959.97
Medical care commodities 3.81 218.47 200,636,864,146.41

It's important to note that not all categories may be tracked since 1985. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $63,000,000,000, 1985 to 2016

This inflation calculator uses the following inflation rate formula:

CPI in 2016CPI in 1985
×
1985 USD value
=
2016 USD value

Then plug in historical CPI values. The U.S. CPI was 107.6 in the year 1985 and 240.007 in 2016:

240.007107.6
×
$63,000,000,000
=
$140,524,544,609.67

$63,000,000,000 in 1985 has the same "purchasing power" or "buying power" as $140,524,544,609.67 in 2016.

To get the total inflation rate for the 31 years between 1985 and 2016, we use the following formula:

CPI in 2016 - CPI in 1985CPI in 1985
×
100
=
Cumulative inflation rate (31 years)

Plugging in the values to this equation, we get:

240.007 - 107.6107.6
×
100
=
123%

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 2.68% per year between 1985 and 2016 (vs all-CPI inflation of 2.62%), for an inflation total of 126.92%.

When using the core inflation measurement, $63,000,000,000 in 1985 is equivalent in buying power to $142,958,258,724.00 in 2016, a difference of $79,958,258,724.00. Recall that for All Items, the converted amount is $140,524,544,609.67 with a difference of $77,524,544,609.67.

In 1985, core inflation was 4.37%.


Comparison to S&P 500 Index

The average inflation rate of 2.62% has a compounding effect between 1985 and 2016. As noted above, this yearly inflation rate compounds to produce an overall price difference of 123.05% over 31 years.

To help put this inflation into perspective, if we had invested $63,000,000,000 in the S&P 500 index in 1985, our investment would be nominally worth approximately $1,735,931,043,352.76 in 2016. This is a return on investment of 2,655.45%, with an absolute return of $1,672,931,043,352.76.

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 55.17% of returns ($922,922,167,508.49) during this period. This means the inflation-adjusted real return of our $63,000,000,000 investment is $750,008,875,844.28.

Investment in S&P 500 Index, 1985-2016
Original Amount Final Amount Change
Nominal $63,000,000,000 $1,735,931,043,352.76 2,655.45%
Real
Inflation Adjusted
$63,000,000,000 $750,008,875,844.28 1,190.49%


News headlines from 1985

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

  • Mikhail Gorbachev replaces Konstantin Chernenko as leader of the Soviet Union.
  • Earthquake with a magnitude of 8.1 rocks Mexico City and kills 10,000 people, leaving over 250,000 homeless.
  • Mikhail Gorbachev (leader of the Soviet Union) and Ronald Reagan (President of the United States) meet for the first time.
  • Ernie Wise makes the first mobile phone call in the UK.

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: “$63,000,000,000 in 1985 → 2016 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 20 Sep. 2019, https://www.officialdata.org/1985-dollars-in-2016?amount=63000000000.

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 1985 to 2016
Cumulative price change 123.05%
Average inflation rate 2.62%
Converted amount ($63,000,000,000 base) $140,524,544,609.67
Price difference ($63,000,000,000 base) $77,524,544,609.67
CPI in 1985 107.600
CPI in 2016 240.007
Inflation in 1985 3.56%
Inflation in 2016 1.26%
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