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# U.S. inflation rate in 1807: -4.92%

### Inflation in 1807 and Its Effect on Dollar Value

Purchasing power increased by 4.92% in 1807 compared to 1806. On average, you would have to spend 4.92% less money in 1807 than in 1806 for the same item. This is an example of deflation.

In other words, \$1 in 1806 is equivalent in purchasing power to about \$0.95 in 1807.

The 1806 inflation rate was 4.27%. The inflation rate in 1807 was -4.92%. The 1807 inflation rate is lower compared to the average inflation rate of 1.47% per year between 1807 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1807 was 11.60. It was 12.20 in the previous year, 1806. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1807 CPI is less than 1806 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -4.92% Converted amount (\$1 base) \$0.95 Price difference (\$1 base) \$-0.05 CPI in 1806 12.200 CPI in 1807 11.600 Inflation in 1806 4.27% Inflation in 1807 -4.92%

### Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1806 would be equivalent to £0.98 in 1807, an absolute change of £-0.02 and a cumulative change of -2.38%.

Compare these numbers to the US's overall absolute change of \$-0.05 and total percent change of -4.92%.

### 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 1806 and 1807.

Compare these values to the overall average of -4.92% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1806 → 1807
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 1806. This table and visualization use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1806 to 1807

This inflation calculator uses the following inflation rate formula:

CPI in 1807CPI in 1806
×
1806 USD value
=
1807 USD value

Then plug in historical CPI values. The U.S. CPI was 12.2 in the year 1806 and 11.6 in 1807:

11.612.2
×
\$1
=
\$0.95

\$1 in 1806 has the same "purchasing power" or "buying power" as \$0.95 in 1807.

To get the total inflation rate for the 1 years between 1806 and 1807, we use the following formula:

CPI in 1807 - CPI in 1806CPI in 1806
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

11.6 - 12.212.2
×
100
=
-5%

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

• Cape colony was made a British colony
• Discovery of an 105' whale skeleton in Oregon by Lewis and Clark
• State funeral held for Admiral Viscount Horatio Nelson, who was entombed in St Paul's Cathedral in London
• The original Lower Trenton Toll Bridge, spanning the Delaware River, is opened. The new bridge was opened in 1935 and is referred to as the Trenton Makes - the World Takes Bridge.

### 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 1807 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 15 Oct. 2019, https://www.officialdata.org/inflation-rate-in-1807.