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# U.S. inflation rate in 1804: 4.42%

### Inflation in 1804 and Its Effect on Dollar Value

Purchasing power decreased by 4.42% in 1804 compared to 1803. On average, you would have to spend 4.42% more money in 1804 than in 1803 for the same item.

In other words, \$1 in 1803 is equivalent in purchasing power to about \$1.04 in 1804.

The 1803 inflation rate was 5.61%. The inflation rate in 1804 was 4.42%. The 1804 inflation rate is higher compared to the average inflation rate of 1.44% per year between 1804 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1804 was 11.80. It was 11.30 in the previous year, 1803. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.

 Average inflation rate 4.42% Converted amount (\$1 base) \$1.04 Price difference (\$1 base) \$0.04 CPI in 1803 11.300 CPI in 1804 11.800 Inflation in 1803 5.61% Inflation in 1804 4.42%

### Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1803 would be equivalent to £1.03 in 1804, an absolute change of £0.03 and a cumulative change of 2.73%.

Compare these numbers to the US's overall absolute change of \$0.04 and total percent change of 4.42%.

### 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 1803 and 1804.

Compare these values to the overall average of 4.42% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1803 → 1804
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 1803. This table and visualization use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1803 to 1804

This inflation calculator uses the following inflation rate formula:

CPI in 1804CPI in 1803
×
1803 USD value
=
1804 USD value

Then plug in historical CPI values. The U.S. CPI was 11.3 in the year 1803 and 11.8 in 1804:

11.811.3
×
\$1
=
\$1.04

\$1 in 1803 has the same "purchasing power" or "buying power" as \$1.04 in 1804.

To get the total inflation rate for the 1 years between 1803 and 1804, we use the following formula:

CPI in 1804 - CPI in 1803CPI in 1803
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

11.8 - 11.311.3
×
100
=
4%

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

• John Hawkins and Richard French, patent the reaping machine
• America makes the Louisiana Purchase.
• The Surrey Iron Railway opens in London
• The Louisiana Purchase is formally marked by the lowering of the French flag in New Orleans
• 1978 Sweden introduces a ban on aerosols.
• Over 30 countries ratify the Environmental Modification Convention, prohibiting weather warefare
• Karol Wojtyla, Polish Cardinal, is elected as the new pope, taking the name Pope John Paul II
• Iranian General Gholam Reza Azhari forms a military government placing Iran under military rule.
• 918 members of Peoples Temple cult, led by Jim Jones, were murdered or committed suicide in Jonestown Guyana.

### 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 1804 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 15 Oct. 2019, https://www.officialdata.org/inflation-rate-in-1804.