$3.90 in 1989 → $7.55 in 2016

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U.S. Inflation Rate, 1989-2016 ($3.90)

According to the Bureau of Labor Statistics consumer price index, the dollar experienced an average inflation rate of 2.48% per year. Prices in 2016 are 93.6% higher than prices in 1989.

In other words, $3.90 in the year 1989 is equivalent in purchasing power to $7.55 in 2016, a difference of $3.65 over 27 years.

The inflation rate in 2016 was 1.26%.

Inflation from 1989 to 2016
Cumulative price change 93.59%
Average inflation rate 2.48%
Price difference ($3.90 base) $3.65
CPI in 1989 124
CPI in 2016 240.007


U.S. inflation from 1913 to 2017


Inflation rates for specific categories

Televisions · New trucks · Hospital services · More

Inflation-adjusted measures

S&P 500 price · S&P 500 earnings · Shiller P/E

How to calculate the inflation rate for $3.90, 1989 to 2016

Start with the inflation rate formula:

CPI in 2016 / CPI in 1989 * 1989 USD value = 2016 USD value

Then plug in historical CPI values. The U.S. CPI was 124 in the year 1989 and 240.007 in 2016:

240.007 / 124 * $3.90 = $7.55

$3.90 in 1989 has the same "purchasing power" as $7.55 in 2016.


News headlines from 1989

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

  • Chinese troops kill an estimated 1,000 students protesting at Tiananmen Square.
  • The first (partially) free elections take place in Poland, bringing democracy to Eastern Europe for the first time in 40 years. (Won by the Solidarity Party)
  • The demolition of the Berlin Wall begins.
  • Presidents George H. W. Bush and Mikhail Gorbachev, declare that the Cold War has ended.

Inflation Data Source

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: “$3.90 in 1989 → 2016 | Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 18 Jan. 2018, http://www.in2013dollars.com/1989-dollars-in-2016?amount=3.90.


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