U.S. inflation rate in 1976: 5.76%

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U.S. inflation rate in 1976: 5.76%

Inflation in 1976 and Its Effect on Dollar Value

Purchasing power decreased by 5.76% in 1976 compared to 1975. On average, you would have to spend 5.76% more money in 1976 than in 1975 for the same item.

In other words, $1 in 1975 is equivalent in purchasing power to about $1.06 in 1976.

The 1975 inflation rate was 9.13%. The inflation rate in 1976 was 5.76%. The 1976 inflation rate is higher compared to the average inflation rate of 3.57% per year between 1976 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1976 was 56.90. It was 53.80 in the previous year, 1975. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.

Inflation from 1975 to 1976
Average inflation rate 5.76%
Converted amount ($1 base) $1.06
Price difference ($1 base) $0.06
CPI in 1975 53.800
CPI in 1976 56.900
Inflation in 1975 9.13%
Inflation in 1976 5.76%

USD 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 1975 to 1976 (figures shown are purchasing power equivalents of $1):

Boston, Massachusetts experienced the highest rate of inflation during the 1 years between 1975 and 1976 (8.13%).

Chicago, Illinois experienced the lowest rate of inflation during the 1 years between 1975 and 1976 (4.79%).

Note that some locations showing 0% inflation may have not yet reported latest data.

Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1975 would be equivalent to £1.17 in 1976, an absolute change of £0.17 and a cumulative change of 16.54%.

In Canada, CA$1.00 in 1975 would be equivalent to CA$1.06 in 1976, an absolute change of CA$0.06 and a cumulative change of 5.63%.

Compare these numbers to the US's overall absolute change of $0.06 and total percent change of 5.76%.

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 1975 and 1976.

Compare these values to the overall average of 5.76% per year:

Category Avg Inflation (%) Total Inflation (%) $1 in 1975 → 1976
Food 3.07 3.07 1.03
Shelter 5.50 5.50 1.06
Energy 7.25 7.25 1.07
Apparel 3.74 3.74 1.04
New vehicles 0.00 0.00 1.00
Used cars and trucks 0.00 0.00 1.00
Transportation services 14.14 14.14 1.14
Medical care services 10.02 10.02 1.10
Medical care commodities 6.05 6.05 1.06

It's important to note that not all categories may be tracked since 1975. This table and visualization use the earliest available data for each category.

How to Calculate Inflation Rate for $1, 1975 to 1976

This inflation calculator uses the following inflation rate formula:

CPI in 1976CPI in 1975
1975 USD value
1976 USD value

Then plug in historical CPI values. The U.S. CPI was 53.8 in the year 1975 and 56.9 in 1976:


$1 in 1975 has the same "purchasing power" or "buying power" as $1.06 in 1976.

To get the total inflation rate for the 1 years between 1975 and 1976, we use the following formula:

CPI in 1976 - CPI in 1975CPI in 1975
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

56.9 - 53.853.8

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 6.57% per year between 1975 and 1976 (vs all-CPI inflation of 5.76%), for an inflation total of 6.57%.

When using the core inflation measurement, $1 in 1975 is equivalent in buying power to $1.07 in 1976, a difference of $0.07. Recall that for All Items, the converted amount is $1.06 with a difference of $0.06.

In 1975, core inflation was 9.21%.

Comparison to S&P 500 Index

To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 1975, our investment would be nominally worth approximately $1.55 in 1976. This is a return on investment of 54.79%, with an absolute return of $0.55.

These numbers are not inflation adjusted, so they are considered nominal. In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account.

The compounding effect of inflation would account for 5.45% of returns ($0.03) during this period. This means the inflation-adjusted real return of our $1 investment is $0.52.

Investment in S&P 500 Index, 1975-1976
Original Amount Final Amount Change
Nominal $1 $1.55 54.79%
Inflation Adjusted
$1 $0.52 51.81%

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).

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 1976 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 24 Oct. 2019, https://www.officialdata.org/inflation-rate-in-1976.

Special thanks to QuickChart for providing downloadable chart images.

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

» Read more about inflation and investment.

Inflation from 1975 to 1976
Average inflation rate 5.76%
Converted amount ($1 base) $1.06
Price difference ($1 base) $0.06
CPI in 1975 53.800
CPI in 1976 56.900
Inflation in 1975 9.13%
Inflation in 1976 5.76%