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# U.S. inflation rate in 1821: -3.42%

### Inflation in 1821 and Its Effect on Dollar Value

Purchasing power increased by 3.42% in 1821 compared to 1820. On average, you would have to spend 3.42% less money in 1821 than in 1820 for the same item. This is an example of deflation.

In other words, \$1 in 1820 is equivalent in purchasing power to about \$0.97 in 1821.

The 1820 inflation rate was -7.87%. The inflation rate in 1821 was -3.42%. The 1821 inflation rate is lower compared to the average inflation rate of 1.59% per year between 1821 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1821 was 11.30. It was 11.70 in the previous year, 1820. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1821 CPI is less than 1820 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -3.42% Converted amount (\$1 base) \$0.97 Price difference (\$1 base) \$-0.03 CPI in 1820 11.700 CPI in 1821 11.300 Inflation in 1820 -7.87% Inflation in 1821 -3.42%

### Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1820 would be equivalent to £0.88 in 1821, an absolute change of £-0.12 and a cumulative change of -11.97%.

Compare these numbers to the US's overall absolute change of \$-0.03 and total percent change of -3.42%.

### 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 1820 and 1821.

Compare these values to the overall average of -3.42% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1820 → 1821
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 1820. This table and visualization use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1820 to 1821

This inflation calculator uses the following inflation rate formula:

CPI in 1821CPI in 1820
×
1820 USD value
=
1821 USD value

Then plug in historical CPI values. The U.S. CPI was 11.7 in the year 1820 and 11.3 in 1821:

11.311.7
×
\$1
=
\$0.97

\$1 in 1820 has the same "purchasing power" or "buying power" as \$0.97 in 1821.

To get the total inflation rate for the 1 years between 1820 and 1821, we use the following formula:

CPI in 1821 - CPI in 1820CPI in 1820
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

11.3 - 11.711.7
×
100
=
-3%

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

• The Astronomical Society of London, is founded, it is now known as the Royal Astronomical Society.
• Fabian Gottlieb von Bellingshausen and Mikhail Lazarev discover Antarctica.

### 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 1821 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 23 Oct. 2019, https://www.officialdata.org/inflation-rate-in-1821.