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# \$600 in 1906 → \$16,748.67 in 2018

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### U.S. Inflation Rate, \$600 in 1906 to 2018

According to the Bureau of Labor Statistics consumer price index, prices in 2018 are 2,691.44% higher than average prices since 1906. The U.S. dollar experienced an average inflation rate of 3.02% per year during this period, meaning the real value of a dollar decreased.

In other words, \$600 in 1906 is equivalent in purchasing power to about \$16,748.67 in 2018, a difference of \$16,148.67 over 112 years.

The 1906 inflation rate was 2.27%. The inflation rate in 2018 was 2.49%. The 2018 inflation rate is higher compared to the average inflation rate of 1.14% per year between 2018 and 2020.

 Cumulative price change 2,691.44% Average inflation rate 3.02% Converted amount (\$600 base) \$16,748.67 Price difference (\$600 base) \$16,148.67 CPI in 1906 9.000 CPI in 2018 251.230 Inflation in 1906 2.27% Inflation in 2018 2.49%

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

### Buying power of \$600 in 1906

This chart shows a calculation of buying power equivalence for \$600 in 1906 (price index tracking began in 1635).

For example, if you started with \$600, you would need to end with \$16,748.67 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$600 is equivalent to \$16,748.67 over time, that means that the "real value" of a single U.S. dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1906 dollars, the chart below shows how \$600 buys less over the past 112 years.

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:

Year Dollar Value Inflation Rate
1906 \$600.00 2.27%
1907 \$626.67 4.44%
1908 \$613.33 -2.13%
1909 \$606.67 -1.09%
1910 \$633.33 4.40%
1911 \$633.33 0.00%
1912 \$646.67 2.11%
1913 \$660.00 2.06%
1914 \$666.67 1.01%
1915 \$673.33 1.00%
1916 \$726.67 7.92%
1917 \$853.33 17.43%
1918 \$1,006.67 17.97%
1919 \$1,153.33 14.57%
1920 \$1,333.33 15.61%
1921 \$1,193.33 -10.50%
1922 \$1,120.00 -6.15%
1923 \$1,140.00 1.79%
1924 \$1,140.00 0.00%
1925 \$1,166.67 2.34%
1926 \$1,180.00 1.14%
1927 \$1,160.00 -1.69%
1928 \$1,140.00 -1.72%
1929 \$1,140.00 0.00%
1930 \$1,113.33 -2.34%
1931 \$1,013.33 -8.98%
1932 \$913.33 -9.87%
1933 \$866.67 -5.11%
1934 \$893.33 3.08%
1935 \$913.33 2.24%
1936 \$926.67 1.46%
1937 \$960.00 3.60%
1938 \$940.00 -2.08%
1939 \$926.67 -1.42%
1940 \$933.33 0.72%
1941 \$980.00 5.00%
1942 \$1,086.67 10.88%
1943 \$1,153.33 6.13%
1944 \$1,173.33 1.73%
1945 \$1,200.00 2.27%
1946 \$1,300.00 8.33%
1947 \$1,486.67 14.36%
1948 \$1,606.67 8.07%
1949 \$1,586.67 -1.24%
1950 \$1,606.67 1.26%
1951 \$1,733.33 7.88%
1952 \$1,766.67 1.92%
1953 \$1,780.00 0.75%
1954 \$1,793.33 0.75%
1955 \$1,786.67 -0.37%
1956 \$1,813.33 1.49%
1957 \$1,873.33 3.31%
1958 \$1,926.67 2.85%
1959 \$1,940.00 0.69%
1960 \$1,973.33 1.72%
1961 \$1,993.33 1.01%
1962 \$2,013.33 1.00%
1963 \$2,040.00 1.32%
1964 \$2,066.67 1.31%
1965 \$2,100.00 1.61%
1966 \$2,160.00 2.86%
1967 \$2,226.67 3.09%
1968 \$2,320.00 4.19%
1969 \$2,446.67 5.46%
1970 \$2,586.67 5.72%
1971 \$2,700.00 4.38%
1972 \$2,786.67 3.21%
1973 \$2,960.00 6.22%
1974 \$3,286.67 11.04%
1975 \$3,586.67 9.13%
1976 \$3,793.33 5.76%
1977 \$4,040.00 6.50%
1978 \$4,346.67 7.59%
1979 \$4,840.00 11.35%
1980 \$5,493.33 13.50%
1981 \$6,060.00 10.32%
1982 \$6,433.33 6.16%
1983 \$6,640.00 3.21%
1984 \$6,926.67 4.32%
1985 \$7,173.33 3.56%
1986 \$7,306.67 1.86%
1987 \$7,573.33 3.65%
1988 \$7,886.67 4.14%
1989 \$8,266.67 4.82%
1990 \$8,713.33 5.40%
1991 \$9,080.00 4.21%
1992 \$9,353.33 3.01%
1993 \$9,633.33 2.99%
1994 \$9,880.00 2.56%
1995 \$10,160.00 2.83%
1996 \$10,460.00 2.95%
1997 \$10,700.00 2.29%
1998 \$10,866.67 1.56%
1999 \$11,106.67 2.21%
2000 \$11,480.00 3.36%
2001 \$11,806.67 2.85%
2002 \$11,993.33 1.58%
2003 \$12,266.67 2.28%
2004 \$12,593.33 2.66%
2005 \$13,020.00 3.39%
2006 \$13,440.00 3.23%
2007 \$13,822.80 2.85%
2008 \$14,353.53 3.84%
2009 \$14,302.47 -0.36%
2010 \$14,537.07 1.64%
2011 \$14,995.93 3.16%
2012 \$15,306.27 2.07%
2013 \$15,530.47 1.46%
2014 \$15,782.40 1.62%
2015 \$15,801.13 0.12%
2016 \$16,000.47 1.26%
2017 \$16,341.33 2.13%
2018 \$16,748.67 2.49%
2019 \$17,043.83 1.76%
2020 \$17,131.60 0.51%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 106 more rows

### Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £600.00 in 1906 would be equivalent to £71,070.54 in 2018, an absolute change of £70,470.54 and a cumulative change of 11,745.09%.

Compare these numbers to the US's overall absolute change of \$16,148.67 and total percent change of 2,691.44%.

### 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 1906 and 2018.

Compare these values to the overall average of 3.02% per year:

Category Avg Inflation (%) Total Inflation (%) \$600 in 1906 → 2018
Food and beverages 3.96 7,628.43 46,370.58
Housing 4.26 10,594.49 64,166.92
Apparel 2.05 872.13 5,832.78
Transportation 3.30 3,706.72 22,840.31
Medical care 5.17 28,154.52 169,527.10
Recreation 1.09 236.36 2,018.17
Education and communication 1.89 717.87 4,907.20
Other goods and services 5.10 26,052.58 156,915.48

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 1906. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$600, 1906 to 2018

This inflation calculator uses the following inflation rate formula:

CPI in 2018CPI in 1906
×
1906 USD value
=
2018 USD value

Then plug in historical CPI values. The U.S. CPI was 9 in the year 1906 and 251.23 in 2018:

251.239
×
\$600
=
\$16,748.67

\$600 in 1906 has the same "purchasing power" or "buying power" as \$16,748.67 in 2018.

To get the total inflation rate for the 112 years between 1906 and 2018, we use the following formula:

CPI in 2018 - CPI in 1906CPI in 1906
×
100
=
Cumulative inflation rate (112 years)

Plugging in the values to this equation, we get:

251.23 - 99
×
100
=
2,691%

### Comparison to S&P 500 Index

The average inflation rate of 3.02% has a compounding effect between 1906 and 2018. As noted above, this yearly inflation rate compounds to produce an overall price difference of 2,691.44% over 112 years.

To help put this inflation into perspective, if we had invested \$600 in the S&P 500 index in 1906, our investment would be nominally worth approximately \$16,511,430.67 in 2018. This is a return on investment of 2,751,805.11%, with an absolute return of \$16,510,830.67 on top of the original \$600.

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 96.42% of returns (\$15,919,929.36) during this period. This means the inflation-adjusted real return of our \$600 investment is \$590,901.32. You may also want to account for capital gains tax, which would take your real return down to around \$502,266 for most people.

Investment in S&P 500 Index, 1906-2018
Original Amount Final Amount Change
Nominal \$600 \$16,511,430.67 2,751,805.11%
Real
\$600 \$591,501.32 98,483.55%

Information displayed above may differ slightly from other S&P 500 calculators. Minor discrepancies can occur because we use the latest CPI data for inflation, annualized inflation numbers for previous years, and we compute S&P price and dividends from January of 1906 to latest available data for 2018 using average monthly close price.

For more details on the S&P 500 between 1906 and 2018, see the stock market returns calculator.

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

• The British battleship HMS Dreadnought is launched. It is known for its revolutionary design.
• Roald Amundsen, a Norwegian explorer, discovers the ‘Magnetic South Pole’.
• Worldwide standard for help is established as 'SOS' by the International Radiotelegraph Conference in Berlin.
• The opium trade is banned by China.

### 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: “\$600 in 1906 → 2018 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Jan. 2020, https://www.officialdata.org/1906-dollars-in-2018?amount=600.