U.S. inflation rate in 1960: 1.72%

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Inflation in 1960 and Its Effect on Dollar Value

Purchasing power decreased by 1.72% in 1960 compared to the previous year, 1959. On average, you would have to spend 1.72% more money in 1960 than in 1959 for the same item.

In other words, $100 in 1959 is equivalent in purchasing power to $101.72 in 1960.

The 1959 inflation rate was 0.69%. The inflation rate in 1960 was 1.72%. The 1960 inflation rate is lower compared to the average inflation rate of 3.76% per year between 1960 and 2018.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1960 was 29.6. It was 29.1 in the previous year, 1959. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.


Inflation from 1959 to 1960
Average inflation rate 1.72%
Converted amount ($100 base) $101.72
Price difference ($100 base) $1.72
CPI in 1959 29.1
CPI in 1960 29.6
Inflation in 1959 0.69%
Inflation in 1960 1.72%


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 1959 to 1960 (figures shown are purchasing power equivalents of $100):

San Francisco, California experienced the highest rate of inflation during the 1 years between 1959 and 1960 (2.06%).

Detroit, Michigan experienced the lowest rate of inflation during the 1 years between 1959 and 1960 (0.82%).


Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £100.00 in 1959 would be equivalent to £101.03 in 1960, an absolute change of £1.03 and a cumulative change of 1.03%.

In Canada, CA$100.00 in 1959 would be equivalent to CA$101.29 in 1960, an absolute change of CA$1.29 and a cumulative change of 1.29%.

Compare these numbers to the US's overall absolute change of $1.72 and total percent change of 1.72%.


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 1959 and 1960.

Compare these values to the overall average of 1.72% per year:

Category Avg Inflation (%) Total Inflation (%) $100 in 1959 → 1960
Food 1.19 1.19 101.19
Shelter 2.02 2.02 102.02
Energy 2.59 2.59 102.59
Apparel 1.50 1.50 101.50
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 4.11 4.11 104.11
Medical care commodities 0.00 0.00 100.00

It's important to note that not all categories may be tracked since 1959. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $100, 1959 to 1960

This inflation calculator uses the following inflation rate formula:

CPI in 1960CPI in 1959
×
1959 USD value
=
1960 USD value

Then plug in historical CPI values. The U.S. CPI was 29.1 in the year 1959 and 29.6 in 1960:

29.629.1
×
$100
=
$101.72

$100 in 1959 has the same "purchasing power" or "buying power" as $101.72 in 1960.

To get the total inflation rate for the 1 years between 1959 and 1960, we use the following formula:

CPI in 1960 - CPI in 1959CPI in 1959
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

29.6 - 29.129.1
×
100
=
2%

Alternate Measurements of Inflation

The above data describe the CPI for all items. Also of note is the Core CPI, which measures inflation for all items except for the more volatile categories of food and energy. Core inflation averaged 1.55% per year between 1959 and 1960 (vs all-CPI inflation of 1.72%), for an inflation total of 1.55%.

When using the core inflation measurement, $100 in 1959 is equivalent in buying power to $101.55 in 1960, a difference of $1.55. Recall that for All Items, the converted amount is $101.72 with a difference of $1.72.

In 1959, core inflation was 1.97%.


News headlines from 1959

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

  • Hawaii becomes the 50th state of the United States of America.
  • Luna I is the first spacecraft to leave the Earth's gravity.
  • Fidel Castro becomes the 16th Prime Minister of Cuba after overthrowing Batista.
  • The Dalai Lama flees China after India grants him political asylum.

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 1960 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 20 Sep. 2018, https://www.officialdata.org/inflation-rate-in-1960.

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


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