U.S. inflation rate in 1881: 0.00%

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Inflation in 1881 and Its Effect on Dollar Value

Purchasing power decreased by 0.00% in 1881 compared to the previous year, 1880. On average, you would have to spend 0.00% more money in 1881 than in 1880 for the same item.

In other words, $100 in 1880 is equivalent in purchasing power to $100 in 1881.

The 1880 inflation rate was 2.00%. The inflation rate in 1881 was 0.00%. The 1881 inflation rate is lower compared to the average inflation rate of 2.37% per year between 1881 and 2018.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1881 was 10.2. It was 10.2 in the previous year, 1880. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.


Inflation from 1880 to 1881
Average inflation rate 0.00%
Converted amount ($100 base) $100
Price difference ($100 base) $0.00
CPI in 1880 10.2
CPI in 1881 10.2
Inflation in 1880 2.00%
Inflation in 1881 0.00%


U.S. inflation chart since 1665


Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £100.00 in 1880 would be equivalent to £98.94 in 1881, an absolute change of £-1.06 and a cumulative change of -1.06%.

Compare these numbers to the US's overall absolute change of $0.00 and total percent change of 0.00%.


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 1880 and 1881.

Compare these values to the overall average of 0.00% per year:

Category Avg Inflation (%) Total Inflation (%) $100 in 1880 → 1881
Food 0.00 0.00 100.00
Shelter 0.00 0.00 100.00
Energy 0.00 0.00 100.00
Apparel 0.00 0.00 100.00
New vehicles 0.00 0.00 100.00
Used cars and trucks 0.00 0.00 100.00
Transportation services 0.00 0.00 100.00
Medical care services 0.00 0.00 100.00
Medical care commodities 0.00 0.00 100.00

It's important to note that not all categories may be tracked since 1880. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $100, 1880 to 1881

This inflation calculator uses the following inflation rate formula:

CPI in 1881CPI in 1880
×
1880 USD value
=
1881 USD value

Then plug in historical CPI values. The U.S. CPI was 10.2 in the year 1880 and 10.2 in 1881:

10.210.2
×
$100
=
$100

$100 in 1880 has the same "purchasing power" or "buying power" as $100 in 1881.

To get the total inflation rate for the 1 years between 1880 and 1881, we use the following formula:

CPI in 1881 - CPI in 1880CPI in 1880
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

10.2 - 10.210.2
×
100
=
0%

Comparison to S&P 500 Index

To help put this inflation into perspective, if you had invested $100 in the S&P 500 index in 1880, your investment would be worth approximately $126.86 in 1881. This is a change of 26.86%.

This means the nominal return on a $100 investment is $26.86, but inflation would eat into your real returns.

Inflation would account for 0.00% of your returns ($0.00), for an inflation-adjusted real return of about $26.86.


News headlines from 1880

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

  • Construction begins on the Panama Canal.
  • The United States constructs its first dedicated sewage system in Memphis, Tennessee.
  • The Salvation Army is formed in London.

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 1881 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 18 Oct. 2018, https://www.officialdata.org/inflation-rate-in-1881.

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


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