$3.90 in 1989 → $7.55 in 2016

Inflation Calculator

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

According to the Bureau of Labor Statistics, 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 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

Bananas · Alcoholic beverages · Indoor plants and flowers · 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 play an important role in economic performance.

  • 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: 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.


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