U.S. inflation rate in 1985: 3.56%

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U.S. Inflation Rate, 1985-2017 ($1)

The consumer price index (CPI) in 1985 was 107.6. 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 2.59% per year. Prices in 2017 are 127.0% higher than prices in 1985.

In other words, $1 in the year 1985 is equivalent to $2.27 in 2017, a difference of $1.27 over 32 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 1985 to 2017
Cumulative price change 127.00%
Average inflation rate 2.59%
Price difference ($1 base) $1.27
CPI in 1985 107.6
CPI in 2017 244.786


U.S. inflation from 1913 to 2017


Inflation rates for specific categories

New trucks · Jewelry · Dental services · More

Inflation-adjusted measures

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

How to calculate the inflation rate for $1 since 1985

Start with the inflation rate formula:

CPI in 2017 / CPI in 1985 * 1985 USD value = 2017 USD value

Then plug in historical CPI values. The U.S. CPI was 107.6 in the year 1985 and 244.786 in 2017:

244.786 / 107.6 * $1 = $2.27

The "purchasing power" of $1 from 1985 is $2.27 in 2017.


News headlines from 1985

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

  • Mikhail Gorbachev replaces Konstantin Chernenko as leader of the Soviet Union.
  • Earthquake with a magnitude of 8.1 rocks Mexico City and kills 10,000 people, leaving over 250,000 homeless.
  • Mikhail Gorbachev (leader of the Soviet Union) and Ronald Reagan (President of the United States) meet for the first time.
  • Ernie Wise makes the first mobile phone call in the UK.

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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