U.S. inflation rate in 1974: 11.04%

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U.S. Inflation Rate, 1974-2018 ($1)

The consumer price index (CPI) in 1974 was 49.3. 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 3.75% per year. Prices in 2018 are 405.0% higher than prices in 1974.

In other words, $1 in the year 1974 is equivalent in purchasing power to $5.05 in 2018, a difference of $4.05 over 44 years.

The current inflation rate in 2018 is 1.72%1. If this number holds, $1 today will be equivalent to $1.02 next year.

Inflation from 1974 to 2018
Cumulative price change 405.00%
Average inflation rate 3.75%
Price difference ($1 base) $4.05
CPI in 1974 49.3
CPI in 2018 248.991


U.S. inflation from 1913 to 2017


Inflation rates for specific categories

Fish and seafood · Jewelry · Public transportation · More

Inflation-adjusted measures

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

How to calculate the inflation rate for $1 since 1974

Start with the inflation rate formula:

CPI in 2018 / CPI in 1974 * 1974 USD value = 2018 USD value

Then plug in historical CPI values. The U.S. CPI was 49.3 in the year 1974 and 248.991 in 2018:

248.991 / 49.3 * $1 = $5.05

$1 in 1974 has the same "purchasing power" as $5.05 in 2018.


News headlines from 1974

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

  • Ayatollah Khomeini, appeals for an Islamic republic of Iran.
  • The 1,000th victim of the Northern Ireland conflict between republican and loyalist paramilitaries is taken.
  • President Richard Nixon announces his resignation.

Inflation Data Source

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 1974 | Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 23 Apr. 2018, http://www.in2013dollars.com/inflation-rate-in-1974.


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