U.S. inflation rate in 1986: 1.86%

Inflation Calculator


U.S. Inflation Rate, 1986-2018 ($1)

The consumer price index (CPI) in 1986 was 109.6. 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 2.59% per year. Prices in 2018 are 127.0% higher than prices in 1986.

In other words, $1 in the year 1986 is equivalent in purchasing power to $2.27 in 2018, a difference of $1.27 over 32 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 1986 to 2018
Cumulative price change 127.00%
Average inflation rate 2.59%
Price difference ($1 base) $1.27
CPI in 1986 109.6
CPI in 2018 248.991

U.S. inflation from 1913 to 2017

Inflation rates for specific categories

Medical care · Milk · Bananas · More

Inflation-adjusted measures

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

How to calculate the inflation rate for $1 since 1986

Start with the inflation rate formula:

CPI in 2018 / CPI in 1986 * 1986 USD value = 2018 USD value

Then plug in historical CPI values. The U.S. CPI was 109.6 in the year 1986 and 248.991 in 2018:

248.991 / 109.6 * $1 = $2.27

$1 in 1986 has the same "purchasing power" as $2.27 in 2018.

News headlines from 1986

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

  • Ferdinand Marcos becomes president of the Philippines after rigged elections.
  • 6.5 million People hold hands across the US in an event referred to as Hands Across America.
  • Doctors announce that the drug AZT will be available to AIDS patients.
  • Talks between Ronald Reagan and Mikhail Gorbachev begin at the Reykjavik summit.
  • Mrs. Davina Thompson receives the first heart, lung and liver transplant in Cambridge, England.

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 1986 | Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 22 Apr. 2018, http://www.in2013dollars.com/inflation-rate-in-1986.

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