U.S. inflation rate in 1784: -3.77%

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Inflation in 1784 and Its Effect on Dollar Value

Purchasing power increased by 3.77% in 1784 compared to the previous year, 1783. On average, you would have to spend 3.77% less money in 1784 than in 1783 for the same item. This is an example of deflation.

In other words, $1 in 1783 is equivalent in purchasing power to $0.96 in 1784.

The 1783 inflation rate was -12.40%. The inflation rate in 1784 was -3.77%. The 1784 inflation rate is lower compared to the average inflation rate of 1.38% per year between 1784 and 2018.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1784 was 10.2. It was 10.6 in the previous year, 1783. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1784 CPI is less than 1783 CPI, negative inflation (also known as deflation) has occurred.


Inflation from 1783 to 1784
Average inflation rate -3.77%
Converted amount ($1 base) $0.96
Price difference ($1 base) $-0.04
CPI in 1783 10.600
CPI in 1784 10.200
Inflation in 1783 -12.40%
Inflation in 1784 -3.77%


U.S. inflation chart since 1665


Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1783 would be equivalent to £1.01 in 1784, an absolute change of £0.01 and a cumulative change of 1.33%.

Compare these numbers to the US's overall absolute change of $-0.04 and total percent change of -3.77%.


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 1783 and 1784.

Compare these values to the overall average of -3.77% per year:

Category Avg Inflation (%) Total Inflation (%) $1 in 1783 → 1784
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 1783. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $1, 1783 to 1784

This inflation calculator uses the following inflation rate formula:

CPI in 1784CPI in 1783
×
1783 USD value
=
1784 USD value

Then plug in historical CPI values. The U.S. CPI was 10.6 in the year 1783 and 10.2 in 1784:

10.210.6
×
$1
=
$0.96

$1 in 1783 has the same "purchasing power" or "buying power" as $0.96 in 1784.

To get the total inflation rate for the 1 years between 1783 and 1784, we use the following formula:

CPI in 1784 - CPI in 1783CPI in 1783
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

10.2 - 10.610.6
×
100
=
-4%

News headlines from 1783

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

  • George Washington makes a speech asking officers not to support and take part in the Newburgh Conspiracy, preventing a potential coup d'etat.
  • Britain gets its youngest Prime Minister, William Pitt the Younger, who was 24 at the time.
  • Hostilities formally cease in the American Revolutionary War

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 1784 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 17 Dec. 2018, https://www.officialdata.org/inflation-rate-in-1784.

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


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