U.S. inflation rate in 1987: 3.65%

Inflation Calculator


U.S. Inflation Rate, 1987-2018 ($1)

The consumer price index (CPI) in 1987 was 113.6. 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 2.56% per year. Prices in 2018 are 119.0% higher than prices in 1987.

In other words, $1 in the year 1987 is equivalent in purchasing power to $2.19 in 2018, a difference of $1.19 over 31 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 1987 to 2018
Cumulative price change 119.00%
Average inflation rate 2.56%
Price difference ($1 base) $1.19
CPI in 1987 113.6
CPI in 2018 248.991

U.S. inflation from 1913 to 2017

Inflation rates for specific categories

Housing · Food · Rent of primary residence · More

Inflation-adjusted measures

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

How to calculate the inflation rate for $1 since 1987

Start with the inflation rate formula:

CPI in 2018 / CPI in 1987 * 1987 USD value = 2018 USD value

Then plug in historical CPI values. The U.S. CPI was 113.6 in the year 1987 and 248.991 in 2018:

248.991 / 113.6 * $1 = $2.19

$1 in 1987 has the same "purchasing power" as $2.19 in 2018.

News headlines from 1987

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

  • New Zealand becomes the only nation to legislate against nuclear power, when their Labour government legislates against nuclear weapons and nuclear powered vessels.
  • Margaret Thatcher becomes the first British PM in 160 years to win a third consecutive term in office.
  • The Dow Jones stock index falls by 508.32 points, the event is later known as Black Monday.

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 1987 | Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 22 Apr. 2018, http://www.in2013dollars.com/inflation-rate-in-1987.

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