U.S. inflation rate in 1989: 4.82%

Inflation Calculator

$

U.S. Inflation Rate, 1989-2017 ($1)

The consumer price index (CPI) in 1989 was 124. 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 2.45% per year. Prices in 2017 are 97.0% higher than prices in 1989.

In other words, $1 in the year 1989 is equivalent to $1.97 in 2017, a difference of $0.97 over 28 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 1989 to 2017
Cumulative price change 97.00%
Average inflation rate 2.45%
Price difference ($1 base) $0.97
CPI in 1989 124
CPI in 2017 244.786


U.S. inflation from 1913 to 2017


Inflation rates for specific categories

Milk · Medical care · Indoor plants and flowers · More

Inflation-adjusted measures

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

How to calculate the inflation rate for $1 since 1989

Start with the inflation rate formula:

CPI in 2017 / CPI in 1989 * 1989 USD value = 2017 USD value

Then plug in historical CPI values. The U.S. CPI was 124 in the year 1989 and 244.786 in 2017:

244.786 / 124 * $1 = $1.97

The "purchasing power" of $1 from 1989 is $1.97 in 2017.


News headlines from 1989

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

  • Chinese troops kill an estimated 1,000 students protesting at Tiananmen Square.
  • The first (partially) free elections take place in Poland, bringing democracy to Eastern Europe for the first time in 40 years. (Won by the Solidarity Party)
  • The demolition of the Berlin Wall begins.
  • Presidents George H. W. Bush and Mikhail Gorbachev, declare that the Cold War has ended.

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.


» Read more about inflation.