The consumer price index (CPI) in 1954 was 26.9. 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 3.52% per year. Prices in 2018 are 817.0% higher than prices in 1954.

In other words, $1 in the year 1954 is equivalent in purchasing power to $9.17 in 2018, a difference of $8.17 over 64 years.

The
current inflation rate
in 2018 is 0.77%^{1}. If this number holds, $1 today will be equivalent to $1.01 next year.

Cumulative price change | 817.00% |

Average inflation rate | 3.52% |

Price difference ($1 base) | $8.17 |

CPI in 1954 | 26.9 |

CPI in 2018 | 246.669 |

CPI in 2018 / CPI in 1954 * 1954 USD value = 2018 USD value

Then plug in historical CPI values. The U.S. CPI was 26.9 in the year 1954 and 246.669 in 2018:

246.669 / 26.9 * $1 =

$1 in 1954 has the same "purchasing power" as $9.17 in 2018.

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

- IBM gives the first public demonstration of a machine translation system in their New York, head office.
- Colonel Gamal Abdal Nasser becomes Prime Minister of Egypt.
- 7 years of fighting ends in Indochina after a formal peace agreement is made between the French and the Communist Viet Minh.

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 1954 | Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 18 Jan. 2018, http://www.in2013dollars.com/inflation-rate-in-1954.