U.S. inflation rate in 1993: 2.99%

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Inflation in 1993 and Its Effect on Dollar Value

Purchasing power decreased by 2.99% in 1993 compared to the previous year, 1992. On average, you would have to spend 2.99% more money in 1993 than in 1992 for the same item.

In other words, $1 in 1992 is equivalent in purchasing power to $1.03 in 1993.

The 1992 inflation rate was 3.01%. The inflation rate in 1993 was 2.99%. The 1993 inflation rate is higher compared to the average inflation rate of 2.26% per year between 1993 and 2018.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1993 was 144.5. It was 140.3 in the previous year, 1992. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.


Inflation from 1992 to 1993
Average inflation rate 2.99%
Converted amount ($1 base) $1.03
Price difference ($1 base) $0.03
CPI in 1992 140.300
CPI in 1993 144.500
Inflation in 1992 3.01%
Inflation in 1993 2.99%


U.S. 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 1992 to 1993 (figures shown are purchasing power equivalents of $1):

Denver, Colorado experienced the highest rate of inflation during the 1 years between 1992 and 1993 (4.22%).

San Diego, California experienced the lowest rate of inflation during the 1 years between 1992 and 1993 (-0.84%).

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 1992 would be equivalent to £1.02 in 1993, an absolute change of £0.02 and a cumulative change of 1.59%.

In Canada, CA$1.00 in 1992 would be equivalent to CA$1.02 in 1993, an absolute change of CA$0.02 and a cumulative change of 1.65%.

Compare these numbers to the US's overall absolute change of $0.03 and total percent change of 2.99%.


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 1992 and 1993.

Compare these values to the overall average of 2.99% per year:

Category Avg Inflation (%) Total Inflation (%) $1 in 1992 → 1993
Food 2.15 2.15 1.02
Shelter 3.00 3.00 1.03
Energy 1.16 1.16 1.01
Apparel 1.35 1.35 1.01
New vehicles 2.73 2.73 1.03
Used cars and trucks 8.71 8.71 1.09
Transportation services 4.63 4.63 1.05
Medical care services 6.50 6.50 1.07
Medical care commodities 3.69 3.69 1.04

It's important to note that not all categories may be tracked since 1992. This table and visualization use the earliest available data for each category.



How to Calculate Inflation Rate for $1, 1992 to 1993

This inflation calculator uses the following inflation rate formula:

CPI in 1993CPI in 1992
×
1992 USD value
=
1993 USD value

Then plug in historical CPI values. The U.S. CPI was 140.3 in the year 1992 and 144.5 in 1993:

144.5140.3
×
$1
=
$1.03

$1 in 1992 has the same "purchasing power" or "buying power" as $1.03 in 1993.

To get the total inflation rate for the 1 years between 1992 and 1993, we use the following formula:

CPI in 1993 - CPI in 1992CPI in 1992
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

144.5 - 140.3140.3
×
100
=
3%

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 3.31% per year between 1992 and 1993 (vs all-CPI inflation of 2.99%), for an inflation total of 3.31%.

When using the core inflation measurement, $1 in 1992 is equivalent in buying power to $1.03 in 1993, a difference of $0.03. Recall that for All Items, the converted amount is $1.03 with a difference of $0.03.

In 1992, core inflation was 3.66%.


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 1992, our investment would be nominally worth approximately $1.20 in 1993. This is a return on investment of 20.35%, with an absolute return of $0.20.

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 2.91% of returns ($0.01) during this period. This means the inflation-adjusted real return of our $1 investment is $0.20.

Investment in S&P 500 Index, 1992-1993
Original Amount Final Amount Change
Nominal $1 $1.20 20.35%
Real
Inflation Adjusted
$1 $0.20 19.76%


News headlines from 1992

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

  • The Conservative party wins the 1992 British general election, returning John Major to his role as Prime Minister.
  • Nelson Mandela's meets with UN Secretary-General Boutros Boutros-Ghali at Dakar.
  • Bill Clinton is elected President of the United States.

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 1993 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 14 Nov. 2018, https://www.officialdata.org/inflation-rate-in-1993.

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


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