U.S. inflation rate in 1971: 4.38%

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U.S. Inflation Rate, 1971-2017 ($1)

The consumer price index (CPI) in 1971 was 40.5. the Bureau of Labor Statistics uses this CPI value to track inflation on a monthly basis.

According to the Bureau of Labor Statistics, the dollar experienced an average inflation rate of 3.99% per year. Prices in 2017 are 504.0% higher than prices in 1971.

In other words, $1 in the year 1971 is equivalent to $6.04 in 2017, a difference of $5.04 over 46 years.

The current inflation rate in 2017 is 1.99%1. If this number holds, $1 today will be equivalent to $1.02 next year.

Inflation from 1971 to 2017
Cumulative price change 504.00%
Average inflation rate 3.99%
Price difference ($1 base) $5.04
CPI in 1971 40.5
CPI in 2017 244.786


U.S. inflation from 1913 to 2017


Inflation-adjusted measures

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

How to calculate the inflation rate for $1 since 1971

Start with the inflation rate formula:

CPI in 2017 / CPI in 1971 * 1971 USD value = 2017 USD value

Then plug in historical CPI values. The U.S. CPI was 40.5 in the year 1971 and 244.786 in 2017:

244.786 / 40.5 * $1 = $6.04

The "purchasing power" of $1 from 1971 is $6.04 in 2017.


News headlines from 1971

Politics and news often play an important role in economic performance.

  • Idi Amin declares himself president of Uganda.
  • The Nasdaq Composite stock market index debuts with fifty companies and a starting value of 100.
  • Indian troops, aided by Bengali guerrillas under Mukti Bahini, are victorious over the Pakistan army, in the battle of Garibpur.

Inflation Data Source: 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.


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