# \$240.45 in 1968 is worth \$1,735.87 in 2018

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## Value of \$240.45 from 1968 to 2018

\$240.45 in 1968 is equivalent in purchasing power to about \$1,735.87 in 2018, an increase of \$1,495.42 over 50 years. The dollar had an average inflation rate of 4.03% per year between 1968 and 2018, producing a cumulative price increase of 621.93%.

This means that prices in 2018 are 7.22 times higher than average prices since 1968, according to the Bureau of Labor Statistics consumer price index.

The 1968 inflation rate was 4.19%. The inflation rate in 2018 was 2.49%. The 2018 inflation rate is higher compared to the average inflation rate of 1.21% per year between 2018 and 2021.

 Cumulative price change 621.93% Average inflation rate 4.03% Converted amount (\$240.45 base) \$1,735.87 Price difference (\$240.45 base) \$1,495.42 CPI in 1968 34.800 CPI in 2018 251.230 Inflation in 1968 4.19% Inflation in 2018 2.49% \$240.45 in 1968 \$1,735.87 in 2018

USD Inflation since 1913
Annual Rate, the Bureau of Labor Statistics CPI

## Buying power of \$240.45 in 1968

This chart shows a calculation of buying power equivalence for \$240.45 in 1968 (price index tracking began in 1635).

For example, if you started with \$240.45, you would need to end with \$1,735.87 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$240.45 is equivalent to \$1,735.87 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 1968 dollars, the chart below shows how \$240.45 is worth less over 50 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:

Dollar inflation: 1968-2018
Year Dollar Value Inflation Rate
1968 \$240.45 4.19%
1969 \$253.58 5.46%
1970 \$268.09 5.72%
1971 \$279.83 4.38%
1972 \$288.82 3.21%
1973 \$306.78 6.22%
1974 \$340.64 11.04%
1975 \$371.73 9.13%
1976 \$393.15 5.76%
1977 \$418.71 6.50%
1978 \$450.50 7.59%
1979 \$501.63 11.35%
1980 \$569.34 13.50%
1981 \$628.07 10.32%
1982 \$666.77 6.16%
1983 \$688.18 3.21%
1984 \$717.90 4.32%
1985 \$743.46 3.56%
1986 \$757.28 1.86%
1987 \$784.92 3.65%
1988 \$817.39 4.14%
1989 \$856.78 4.82%
1990 \$903.07 5.40%
1991 \$941.07 4.21%
1992 \$969.40 3.01%
1993 \$998.42 2.99%
1994 \$1,023.99 2.56%
1995 \$1,053.01 2.83%
1996 \$1,084.10 2.95%
1997 \$1,108.97 2.29%
1998 \$1,126.25 1.56%
1999 \$1,151.12 2.21%
2000 \$1,189.81 3.36%
2001 \$1,223.67 2.85%
2002 \$1,243.02 1.58%
2003 \$1,271.34 2.28%
2004 \$1,305.20 2.66%
2005 \$1,349.42 3.39%
2006 \$1,392.95 3.23%
2007 \$1,432.63 2.85%
2008 \$1,487.63 3.84%
2009 \$1,482.34 -0.36%
2010 \$1,506.65 1.64%
2011 \$1,554.21 3.16%
2012 \$1,586.38 2.07%
2013 \$1,609.61 1.46%
2014 \$1,635.72 1.62%
2015 \$1,637.66 0.12%
2016 \$1,658.32 1.26%
2017 \$1,693.65 2.13%
2018 \$1,735.87 2.49%
2019 \$1,766.46 1.76%
2020 \$1,788.25 1.23%
2021 \$1,799.74 0.64%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 44 more rows

This conversion table shows various other 1968 amounts in 2018 dollars, based on the 621.93% change in prices:

Conversion: 1968 dollars in 2018
Initial value Equivalent value
\$1 dollar in 1968 \$7.22 dollars in 2018
\$5 dollars in 1968 \$36.10 dollars in 2018
\$10 dollars in 1968 \$72.19 dollars in 2018
\$50 dollars in 1968 \$360.96 dollars in 2018
\$100 dollars in 1968 \$721.93 dollars in 2018
\$500 dollars in 1968 \$3,609.63 dollars in 2018
\$1,000 dollars in 1968 \$7,219.25 dollars in 2018
\$5,000 dollars in 1968 \$36,096.26 dollars in 2018
\$10,000 dollars in 1968 \$72,192.53 dollars in 2018
\$50,000 dollars in 1968 \$360,962.64 dollars in 2018
\$100,000 dollars in 1968 \$721,925.29 dollars in 2018
\$500,000 dollars in 1968 \$3,609,626.44 dollars in 2018
\$1,000,000 dollars in 1968 \$7,219,252.87 dollars in 2018

## Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1968 to 2018 (figures shown are purchasing power equivalents of \$240.45):

San Francisco, California experienced the highest rate of inflation during the 50 years between 1968 and 2018 (4.36%).

Detroit, Michigan experienced the lowest rate of inflation during the 50 years between 1968 and 2018 (3.85%).

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 £240.45 in 1968 would be equivalent to £4,062.55 in 2018, an absolute change of £3,822.10 and a cumulative change of 1,589.56%.

In Canada, CA\$240.45 in 1968 would be equivalent to CA\$1,638.07 in 2018, an absolute change of CA\$1,397.62 and a cumulative change of 581.25%.

Compare these numbers to the US's overall absolute change of \$1,495.42 and total percent change of 621.93%.

## Inflation by Spending Category

CPI is the weighted combination of many categories of spending that are tracked by the government. Breaking down these categories helps explain the main drivers behind price changes. This chart shows the average rate of inflation for select CPI categories between 1968 and 2018.

Compare these values to the overall average of 4.03% per year:

Category Avg Inflation (%) Total Inflation (%) \$240.45 in 1968 → 2018
Food and beverages 3.97 598.81 1,680.29
Housing 4.26 706.97 1,940.36
Apparel 1.71 133.83 562.23
Transportation 3.69 513.49 1,475.14
Medical care 5.73 1,523.18 3,902.94
Recreation 1.09 72.28 414.24
Education and communication 1.90 155.95 615.43
Other goods and services 5.09 1,099.18 2,883.43

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 1968. This table and charts use the earliest available data for each category.

## How to Calculate Inflation Rate for \$240.45, 1968 to 2018

Our calculations use the following inflation rate formula to calculate the change in value between 1968 and 2018:

CPI in 2018 CPI in 1968
×
1968 USD value
=
2018 USD value

Then plug in historical CPI values. The U.S. CPI was 34.8 in the year 1968 and 251.23 in 2018:

251.2334.8
×
\$240.45
=
\$1,735.87

\$240.45 in 1968 has the same "purchasing power" or "buying power" as \$1,735.87 in 2018.

To get the total inflation rate for the 50 years between 1968 and 2018, we use the following formula:

CPI in 2018 - CPI in 1968CPI in 1968
×
100
=
Cumulative inflation rate (50 years)

Plugging in the values to this equation, we get:

251.23 - 34.834.8
×
100
=
622%

## 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 4.00% per year between 1968 and 2018 (vs all-CPI inflation of 4.03%), for an inflation total of 609.25%.

When using the core inflation measurement, \$240.45 in 1968 is equivalent in buying power to \$1,705.38 in 2018, a difference of \$1,464.93. Recall that for All Items, the converted amount is \$1,735.87 with a difference of \$1,495.42.

In 1968, core inflation was 4.63%.

## Comparison to S&P 500 Index

The average inflation rate of 4.03% has a compounding effect between 1968 and 2018. As noted above, this yearly inflation rate compounds to produce an overall price difference of 621.93% over 50 years.

To help put this inflation into perspective, if we had invested \$240.45 in the S&P 500 index in 1968, our investment would be nominally worth approximately \$28,847.04 in 2018. This is a return on investment of 11,897.10%, with an absolute return of \$28,606.59 on top of the original \$240.45.

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 0.00% of returns (\$0.00) during this period. This means the inflation-adjusted real return of our \$240.45 investment is \$0.00. You may also want to account for capital gains tax, which would take your real return down to around \$0 for most people.

Investment in S&P 500 Index, 1968-2018
Original Amount Final Amount Change
Nominal \$240.45 \$28,847.04 11,897.10%
Real
\$240.45 \$0.00 0.00%

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 1968 to latest available data for 2018 using average monthly close price.

For more details on the S&P 500 between 1968 and 2018, see the stock market returns calculator.

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

• The Battle of Khe Sanh begins it is one of the most controversial battles of the Vietnam War.
• A photograph that later became an anti-war icon, is taken: it captures Saigon police chief Nguyễn Ngọc Loan executing Viet Cong officer Nguyễn Văn Lém with a pistol shot to the head.
• Martin Luther King Jr is assassinated in Memphis, Tennessee.
• France becomes the world's 5th thermonuclear power after the Mururoa Atoll detonation.

## 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: “\$240.45 in 1968 → 2018 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 18 Jan. 2021, https://www.officialdata.org/1968-dollars-in-2018?amount=240.45.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

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