Inflation Calculator
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U.S. Inflation Rate, $8,000 in 1845 to 2017
According to the Bureau of Labor Statistics consumer price index, prices in 2017 are 3,125.26% higher than average prices throughout 1845. The dollar experienced an average inflation rate of 2.04% per year during this period, meaning the real value of a dollar decreased.
In other words, $8,000 in 1845 is equivalent in purchasing power to about $258,021.05 in 2017, a difference of $250,021.05 over 172 years.
The 1845 inflation rate was 1.33%. The inflation rate in 2017 was 2.13%. The 2017 inflation rate is lower compared to the average inflation rate of 2.46% per year between 2017 and 2019.
Contents
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| Cumulative price change | 3,125.26% |
| Average inflation rate | 2.04% |
| Converted amount ($8,000 base) | $258,021.05 |
| Price difference ($8,000 base) | $250,021.05 |
| CPI in 1845 | 7.600 |
| CPI in 2017 | 245.120 |
| Inflation in 1845 | 1.33% |
| Inflation in 2017 | 2.13% |
Buying power of $8,000 in 1845
This chart shows calculation of buying power equivalence, often referred to as "the value of a dollar" over time for $8,000 in 1845 (price index tracking began in 1635).
According to the Bureau of Labor Statistics, each of these USD amounts below is equal in terms of what it could buy at the time:
Inflation by Country
Inflation can also vary widely by country. For comparison, in the UK £8,000.00 in 1845 would be equivalent to £924,645.16 in 2017, an absolute change of £916,645.16 and a cumulative change of 11,458.06%.
Compare these numbers to the US's overall absolute change of $250,021.05 and total percent change of 3,125.26%.
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 1845 and 2017.
Compare these values to the overall average of 2.04% per year:
| Category | Avg Inflation (%) | Total Inflation (%) | $8,000 in 1845 → 2017 |
|---|---|---|---|
| Food and beverages | 4.01 | 86,339.13 | 6,915,130.40 |
| Housing | 4.29 | 136,685.08 | 10,942,806.46 |
| Apparel | 2.07 | 3,297.86 | 271,828.48 |
| Transportation | 3.29 | 26,000.96 | 2,088,076.97 |
| Medical care | 5.21 | 626,632.01 | 50,138,560.82 |
| Recreation | 1.11 | 571.96 | 53,757.13 |
| Education and communication | 1.97 | 2,742.04 | 227,362.81 |
| Other goods and services | 5.15 | 566,971.53 | 45,365,722.38 |
The graph below compares inflation in categories of goods over time. Click on a category such as "Food" to toggle it on or off:
For all these visualizations, it's important to note that not all categories may have been tracked since 1845. This table and charts use the earliest available data for each category.
How to Calculate Inflation Rate for $8,000, 1845 to 2017
This inflation calculator uses the following inflation rate formula:
CPI in 2017CPI in 1845
×
1845 USD value
=
2017 USD value
Then plug in historical CPI values. The U.S. CPI was 7.6 in the year 1845 and 245.12 in 2017:
245.127.6
×
$8,000
=
$258,021.05
$8,000 in 1845 has the same "purchasing power" or "buying power" as $258,021.05 in 2017.
To get the total inflation rate for the 172 years between 1845 and 2017, we use the following formula:
CPI in 2017 - CPI in 1845CPI in 1845
×
100
=
Cumulative inflation rate (172 years)
Plugging in the values to this equation, we get:
245.12 - 7.67.6
×
100
=
3,125%
News headlines from 1845
Politics and news often influence economic performance. Here's what was happening at the time:
- Suggestion of aggressive expansion of the United States made by President James K. Polk to Congress, appeal known as Manifest Destiny
- The Union admits Texas as 28th state.
- James K. Polk,becomes the United States' 11th President,
Data Source & Citation
Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (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: “$8,000 in 1845 → 2017 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 12 Dec. 2019, https://www.officialdata.org/1845-dollars-in-2017?amount=8000.
Special thanks to QuickChart for providing downloadable chart images.
in2013dollars.com is a reference website maintained by the Official Data Foundation.
| Cumulative price change | 3,125.26% |
| Average inflation rate | 2.04% |
| Converted amount ($8,000 base) | $258,021.05 |
| Price difference ($8,000 base) | $250,021.05 |
| CPI in 1845 | 7.600 |
| CPI in 2017 | 245.120 |
| Inflation in 1845 | 1.33% |
| Inflation in 2017 | 2.13% |