\$

# \$1 in 1720 → \$0.95 in 1721

### U.S. Inflation Rate, \$1 in 1720 to 1721

According to the Bureau of Labor Statistics consumer price index, prices in 1721 are 4.76% lower than average prices since 1720. The U.S. dollar experienced an average deflation rate of -4.76% per year during this period, meaning the real value of a dollar increased.

In other words, \$1 in 1720 is equivalent in purchasing power to about \$0.95 in 1721.

The 1720 inflation rate was -6.67%. The inflation rate in 1721 was -4.76%. The 1721 inflation rate is lower compared to the average inflation rate of 1.40% per year between 1721 and 2020.

 Average inflation rate -4.76% Converted amount (\$1 base) \$0.95 Price difference (\$1 base) \$-0.05 CPI in 1720 4.200 CPI in 1721 4.000 Inflation in 1720 -6.67% Inflation in 1721 -4.76%

USD Inflation since 1635
Annual Rate, the Bureau of Labor Statistics CPI

### 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 1720 and 1721.

Compare these values to the overall average of -4.76% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1720 → 1721
Food and beverages 0.00 0.00 1.00
Housing 0.00 0.00 1.00
Apparel 0.00 0.00 1.00
Transportation 0.00 0.00 1.00
Medical care 0.00 0.00 1.00
Recreation 0.00 0.00 1.00
Education and communication 0.00 0.00 1.00
Other goods and services 0.00 0.00 1.00

For all these visualizations, it's important to note that not all categories may have been tracked since 1720. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1720 to 1721

This inflation calculator uses the following inflation rate formula:

CPI in 1721CPI in 1720
×
1720 USD value
=
1721 USD value

Then plug in historical CPI values. The U.S. CPI was 4.2 in the year 1720 and 4 in 1721:

44.2
×
\$1
=
\$0.95

\$1 in 1720 has the same "purchasing power" or "buying power" as \$0.95 in 1721.

To get the total inflation rate for the 1 years between 1720 and 1721, we use the following formula:

CPI in 1721 - CPI in 1720CPI in 1720
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

4 - 4.24.2
×
100
=
-5%

### 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: “\$1 in 1720 → 1721 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Jan. 2020, https://www.officialdata.org/1720-dollars-in-1721?amount=1.