U.S. inflation rate in 1975: 9.13%

Inflation Calculator


U.S. Inflation Rate, 1975-2018 ($1)

The consumer price index (CPI) in 1975 was 53.8. 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 3.63% per year. Prices in 2018 are 363.0% higher than prices in 1975.

In other words, $1 in the year 1975 is equivalent in purchasing power to $4.63 in 2018, a difference of $3.63 over 43 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 1975 to 2018
Cumulative price change 363.00%
Average inflation rate 3.63%
Price difference ($1 base) $3.63
CPI in 1975 53.8
CPI in 2018 248.991

U.S. inflation from 1913 to 2017

Inflation rates for specific categories

Rent of primary residence · Housing · Food · More

Inflation-adjusted measures

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

How to calculate the inflation rate for $1 since 1975

Start with the inflation rate formula:

CPI in 2018 / CPI in 1975 * 1975 USD value = 2018 USD value

Then plug in historical CPI values. The U.S. CPI was 53.8 in the year 1975 and 248.991 in 2018:

248.991 / 53.8 * $1 = $4.63

$1 in 1975 has the same "purchasing power" as $4.63 in 2018.

News headlines from 1975

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

  • Margaret Thatcher becomes leader of the British Conservative Party, after defeating Edward Heath.
  • Ethiopia abrogates its 3,000-year-old monarchy.
  • Bill Gates and Paul Allen found Microsoft.
  • The US signals the beginning of the end of its involvement Vietnam, after it begins to evacuate its citizens from Saigon.
  • Gough Whitlam is removed by Governor General Sir John Kerr: the first time an elected Prime Minister had been deposed in 200 years (Australia).

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 1975 | Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 23 Apr. 2018, http://www.in2013dollars.com/inflation-rate-in-1975.

» Read more about inflation.