U.S. inflation rate in 1862: 14.77%

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Inflation in 1862 and Its Effect on Dollar Value

Purchasing power decreased by 14.77% in 1862 compared to the previous year, 1861. On average, you would have to spend 14.77% more money in 1862 than in 1861 for the same item.

In other words, $1 in 1861 is equivalent in purchasing power to $1.15 in 1862.

The 1861 inflation rate was 6.02%. The inflation rate in 1862 was 14.77%. The 1862 inflation rate is higher compared to the average inflation rate of 2.08% per year between 1862 and 2018.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1862 was 10.1. It was 8.8 in the previous year, 1861. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.


Inflation from 1861 to 1862
Average inflation rate 14.77%
Converted amount ($1 base) $1.15
Price difference ($1 base) $0.15
CPI in 1861 8.800
CPI in 1862 10.100
Inflation in 1861 6.02%
Inflation in 1862 14.77%


U.S. inflation chart since 1665


Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1861 would be equivalent to £0.98 in 1862, an absolute change of £-0.02 and a cumulative change of -2.11%.

Compare these numbers to the US's overall absolute change of $0.15 and total percent change of 14.77%.


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 1861 and 1862.

Compare these values to the overall average of 14.77% per year:

Category Avg Inflation (%) Total Inflation (%) $1 in 1861 → 1862
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 1861. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $1, 1861 to 1862

This inflation calculator uses the following inflation rate formula:

CPI in 1862CPI in 1861
×
1861 USD value
=
1862 USD value

Then plug in historical CPI values. The U.S. CPI was 8.8 in the year 1861 and 10.1 in 1862:

10.18.8
×
$1
=
$1.15

$1 in 1861 has the same "purchasing power" or "buying power" as $1.15 in 1862.

To get the total inflation rate for the 1 years between 1861 and 1862, we use the following formula:

CPI in 1862 - CPI in 1861CPI in 1861
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

10.1 - 8.88.8
×
100
=
15%

News headlines from 1861

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

  • The first King of Italy is crowned, named King Victor Emmanuel II of Sardinia.
  • Serfdom is abolished by Russian Tsar Alexander II.
  • Abraham Lincoln is inaugurated as the 16th President of the United States.
  • Italy is unified under King Victor Emmanuel II.

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 1862 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 16 Dec. 2018, https://www.officialdata.org/inflation-rate-in-1862.

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


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