U.S. inflation rate in 1944: 1.73%

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Inflation in 1944 and Its Effect on Dollar Value

Purchasing power decreased by 1.73% in 1944 compared to the previous year, 1943. On average, you would have to spend 1.73% more money in 1944 than in 1943 for the same item.

In other words, $1 in 1943 is equivalent in purchasing power to $1.02 in 1944.

The 1943 inflation rate was 6.13%. The inflation rate in 1944 was 1.73%. The 1944 inflation rate is lower compared to the average inflation rate of 3.66% per year between 1944 and 2018.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1944 was 17.6. It was 17.3 in the previous year, 1943. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.


Inflation from 1943 to 1944
Average inflation rate 1.73%
Converted amount ($1 base) $1.02
Price difference ($1 base) $0.02
CPI in 1943 17.300
CPI in 1944 17.600
Inflation in 1943 6.13%
Inflation in 1944 1.73%


U.S. Inflation since 1913
Annual Rate, U.S. Bureau of Labor Statistics CPI

Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1943 to 1944 (figures shown are purchasing power equivalents of $1):

San Francisco, California experienced the highest rate of inflation during the 1 years between 1943 and 1944 (2.56%).

Houston, Texas experienced the lowest rate of inflation during the 1 years between 1943 and 1944 (0.93%).

Note that some locations showing 0% inflation may have not yet reported latest data.


Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1943 would be equivalent to £1.03 in 1944, an absolute change of £0.03 and a cumulative change of 2.82%.

In Canada, CA$1.00 in 1943 would be equivalent to CA$0.98 in 1944, an absolute change of CA$-0.02 and a cumulative change of -2.17%.

Compare these numbers to the US's overall absolute change of $0.02 and total percent change of 1.73%.


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 1943 and 1944.

Compare these values to the overall average of 1.73% per year:

Category Avg Inflation (%) Total Inflation (%) $1 in 1943 → 1944
Food -1.30 -1.30 0.99
Shelter 0.00 0.00 1.00
Energy 0.00 0.00 1.00
Apparel 7.01 7.01 1.07
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 4.11 4.11 1.04
Medical care commodities 0.00 0.00 1.00

It's important to note that not all categories may be tracked since 1943. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $1, 1943 to 1944

This inflation calculator uses the following inflation rate formula:

CPI in 1944CPI in 1943
×
1943 USD value
=
1944 USD value

Then plug in historical CPI values. The U.S. CPI was 17.3 in the year 1943 and 17.6 in 1944:

17.617.3
×
$1
=
$1.02

$1 in 1943 has the same "purchasing power" or "buying power" as $1.02 in 1944.

To get the total inflation rate for the 1 years between 1943 and 1944, we use the following formula:

CPI in 1944 - CPI in 1943CPI in 1943
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

17.6 - 17.317.3
×
100
=
2%

Comparison to S&P 500 Index

To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 1943, our investment would be nominally worth approximately $1.48 in 1944. This is a return on investment of 47.91%, with an absolute return of $0.48.

These numbers are not inflation adjusted, so they are considered nominal. In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account.

The compounding effect of inflation would account for 1.70% of returns ($0.01) during this period. This means the inflation-adjusted real return of our $1 investment is $0.47.

Investment in S&P 500 Index, 1943-1944
Original Amount Final Amount Change
Nominal $1 $1.48 47.91%
Real
Inflation Adjusted
$1 $0.47 47.09%


News headlines from 1943

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

  • German general Friedrich von Paul surrenders to the Russians in Stalingrad.
  • The Japanese evacuate Guadalcanal, leading to one of the great WWII battles on the Solomon Islands
  • The Krakow Ghetto is liquidated by the Nazis.
  • The RAF bomb the Möhne and Eder dams in the Ruhr valley, in an operation known as Chastise.
  • Himmler orders the extermination of all the Nazi ghettos in Poland.

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 1944 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 19 Dec. 2018, https://www.officialdata.org/inflation-rate-in-1944.

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


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