U.S. inflation rate in 1925: 2.34%

Inflation Calculator


U.S. Inflation Rate, 1925-2018 ($1)

The consumer price index (CPI) in 1925 was 17.5. the Bureau of Labor Statistics uses this CPI value to track inflation on a monthly basis.

According to the Bureau of Labor Statistics consumer price index, the dollar experienced an average inflation rate of 2.90% per year. Prices in 2018 are 1323.0% higher than prices in 1925.

In other words, $1 in the year 1925 is equivalent in purchasing power to $14.23 in 2018, a difference of $13.23 over 93 years.

The current inflation rate in 2018 is 1.72%1. If this number holds, $1 today will be equivalent to $1.02 next year.

Inflation from 1925 to 2018
Cumulative price change 1323.00%
Average inflation rate 2.90%
Price difference ($1 base) $13.23
CPI in 1925 17.5
CPI in 2018 248.991

U.S. inflation from 1913 to 2017

Inflation rates for specific categories

Juices and nonalcoholic drinks · Housing · Film and photographic supplies · More

Inflation-adjusted measures

S&P 500 price · S&P 500 earnings · Shiller P/E

How to calculate the inflation rate for $1 since 1925

Start with the inflation rate formula:

CPI in 2018 / CPI in 1925 * 1925 USD value = 2018 USD value

Then plug in historical CPI values. The U.S. CPI was 17.5 in the year 1925 and 248.991 in 2018:

248.991 / 17.5 * $1 = $14.23

$1 in 1925 has the same "purchasing power" as $14.23 in 2018.

News headlines from 1925

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

  • Mein Kampf is published by Adolf Hitler.
  • The Ku Klux Klan's first national march takes place in Washington.
  • The last Qajar Shah of Iran is deposed with Reza Shah Pahlavi taking over.
  • Scopes monkey trial ends in Dayton, Tennessee, finding John T. Scopes guilty of teaching evolution.

Inflation Data Source

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 1925 | Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 23 Apr. 2018, http://www.in2013dollars.com/inflation-rate-in-1925.

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