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# U.S. inflation rate in 1818: -4.51%

### Inflation in 1818 and Its Effect on Dollar Value

Purchasing power increased by 4.51% in 1818 compared to 1817. On average, you would have to spend 4.51% less money in 1818 than in 1817 for the same item. This is an example of deflation.

In other words, \$1 in 1817 is equivalent in purchasing power to about \$0.95 in 1818.

The 1817 inflation rate was -5.67%. The inflation rate in 1818 was -4.51%. The 1818 inflation rate is lower compared to the average inflation rate of 1.51% per year between 1818 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1818 was 12.70. It was 13.30 in the previous year, 1817. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1818 CPI is less than 1817 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -4.51% Converted amount (\$1 base) \$0.95 Price difference (\$1 base) \$-0.05 CPI in 1817 13.300 CPI in 1818 12.700 Inflation in 1817 -5.67% Inflation in 1818 -4.51%

### Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1817 would be equivalent to £1.00 in 1818, an absolute change of £0.00 and a cumulative change of 0.00%.

Compare these numbers to the US's overall absolute change of \$-0.05 and total percent change of -4.51%.

### 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 1817 and 1818.

Compare these values to the overall average of -4.51% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1817 → 1818
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 1817. This table and visualization use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1817 to 1818

This inflation calculator uses the following inflation rate formula:

CPI in 1818CPI in 1817
×
1817 USD value
=
1818 USD value

Then plug in historical CPI values. The U.S. CPI was 13.3 in the year 1817 and 12.7 in 1818:

12.713.3
×
\$1
=
\$0.95

\$1 in 1817 has the same "purchasing power" or "buying power" as \$0.95 in 1818.

To get the total inflation rate for the 1 years between 1817 and 1818, we use the following formula:

CPI in 1818 - CPI in 1817CPI in 1817
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

12.7 - 13.313.3
×
100
=
-5%

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

• Jose de San Martin leads an army over the Andes to attack Spanish royalists in Chile.
• The New York Stock exchange is founded.
• Alexander Twilight became the first African American to graduate from a US college, Middlebury College, receiving a BA degree.
• The first Evangelical church is built in New Berlin, Pennsylvania

### 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 1818 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 15 Oct. 2019, https://www.officialdata.org/inflation-rate-in-1818.