Purchasing power decreased by 0.72% in 1940 compared to the previous year, 1939. On average, you would have to spend 0.72% more money in 1940 than in 1939 for the same item.
In other words, $100 in 1939 is equivalent in purchasing power to $100.72 in 1940.
The 1939 inflation rate was -1.42%. The inflation rate in 1940 was 0.72%. The 1940 inflation rate is lower compared to the average inflation rate of 3.78% per year between 1940 and 2018.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1940 was 14. It was 13.9 in the previous year, 1939. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.
|Average inflation rate||0.72%|
|Converted amount ($100 base)||$100.72|
|Price difference ($100 base)||$0.72|
|CPI in 1939||13.9|
|CPI in 1940||14|
|Inflation in 1939||-1.42%|
|Inflation in 1940||0.72%|
Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1939 to 1940 (figures shown are purchasing power equivalents of $100):
New York experienced the highest rate of inflation during the 1 years between 1939 and 1940 (1.03%).
Atlanta, Georgia experienced the lowest rate of inflation during the 1 years between 1939 and 1940 (-0.31%).
Inflation can also vary widely by country. For comparison, in the UK £100.00 in 1939 would be equivalent to £116.76 in 1940, an absolute change of £16.76 and a cumulative change of 16.76%.
In Canada, CA$100.00 in 1939 would be equivalent to CA$105.13 in 1940, an absolute change of CA$5.13 and a cumulative change of 5.13%.
Compare these numbers to the US's overall absolute change of $0.72 and total percent change of 0.72%.
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 1939 and 1940.
Compare these values to the overall average of 0.72% per year:
|Category||Avg Inflation (%)||Total Inflation (%)||$100 in 1939 → 1940|
|Used cars and trucks||0.00||0.00||100.00|
|Medical care services||0.24||0.24||100.24|
|Medical care commodities||0.00||0.00||100.00|
It's important to note that not all categories may be tracked since 1939. This table and visualization use the earliest available data for each category.
This inflation calculator uses the following inflation rate formula:
Then plug in historical CPI values. The U.S. CPI was 13.9 in the year 1939 and 14 in 1940:
$100 in 1939 has the same "purchasing power" or "buying power" as $100.72 in 1940.
To get the total inflation rate for the 1 years between 1939 and 1940, we use the following formula:
Plugging in the values to this equation, we get:
To help put this inflation into perspective, if you had invested $100 in the S&P 500 index in 1939, your investment would be worth approximately $93.80 in 1940. This is a change of -6.20%.
This means the nominal return on a $100 investment is $-6.20, but inflation would eat into your real returns.
Inflation would account for 0.71% of your returns ($-0.04), for an inflation-adjusted real return of about $-6.16.
Politics and news often influence economic performance. Here's what was happening at the time:
Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (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 1940 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 13 Oct. 2018, https://www.officialdata.org/inflation-rate-in-1940.
in2013dollars.com is a reference website maintained by the Official Data Foundation.