U.S. inflation rate in 1777: 21.84%

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Inflation in 1777 and Its Effect on Dollar Value

Purchasing power decreased by 21.84% in 1777 compared to the previous year, 1776. On average, you would have to spend 21.84% more money in 1777 than in 1776 for the same item.

In other words, $1 in 1776 is equivalent in purchasing power to $1.22 in 1777.

The 1776 inflation rate was 12.99%. The inflation rate in 1777 was 21.84%. The 1777 inflation rate is higher compared to the average inflation rate of 1.32% per year between 1777 and 2018.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1777 was 10.6. It was 8.7 in the previous year, 1776. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.


Inflation from 1776 to 1777
Average inflation rate 21.84%
Converted amount ($1 base) $1.22
Price difference ($1 base) $0.22
CPI in 1776 8.700
CPI in 1777 10.600
Inflation in 1776 12.99%
Inflation in 1777 21.84%


U.S. inflation chart since 1665


Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1776 would be equivalent to £1.00 in 1777, an absolute change of £0.00 and a cumulative change of 0.00%.

Compare these numbers to the US's overall absolute change of $0.22 and total percent change of 21.84%.


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 1776 and 1777.

Compare these values to the overall average of 21.84% per year:

Category Avg Inflation (%) Total Inflation (%) $1 in 1776 → 1777
Food 0.00 0.00 1.00
Shelter 0.00 0.00 1.00
Energy 0.00 0.00 1.00
Apparel 0.00 0.00 1.00
New vehicles 0.00 0.00 1.00
Used cars and trucks 0.00 0.00 1.00
Transportation services 0.00 0.00 1.00
Medical care services 0.00 0.00 1.00
Medical care commodities 0.00 0.00 1.00

It's important to note that not all categories may be tracked since 1776. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $1, 1776 to 1777

This inflation calculator uses the following inflation rate formula:

CPI in 1777CPI in 1776
×
1776 USD value
=
1777 USD value

Then plug in historical CPI values. The U.S. CPI was 8.7 in the year 1776 and 10.6 in 1777:

10.68.7
×
$1
=
$1.22

$1 in 1776 has the same "purchasing power" or "buying power" as $1.22 in 1777.

To get the total inflation rate for the 1 years between 1776 and 1777, we use the following formula:

CPI in 1777 - CPI in 1776CPI in 1776
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

10.6 - 8.78.7
×
100
=
22%

News headlines from 1776

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

  • Austria outlaws interrogation and torture.
  • Thomas Paine issues Common Sense, a pamphlet advocating American independence.
  • 56 people formally sign the U.S. Declaration of Independence
  • The United States Congress officially releases the Declaration of Independence.
  • United States of America gets its official name
  • British troops capture Fort Washington.

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: “Inflation Rate in 1777 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 17 Dec. 2018, https://www.officialdata.org/inflation-rate-in-1777.

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


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