# U.S. inflation rate in 1742: -10.77%

## Inflation Calculator

\$

### Inflation in 1742 and Its Effect on Dollar Value

Purchasing power increased by 10.77% in 1742 compared to 1741. On average, you would have to spend 10.77% less money in 1742 than in 1741 for the same item. This is an example of deflation.

In other words, \$1 in 1741 is equivalent in purchasing power to about \$0.89 in 1742.

The 1741 inflation rate was 66.67%. The inflation rate in 1742 was -10.77%. The 1742 inflation rate is lower compared to the average inflation rate of 1.38% per year between 1742 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1742 was 5.80. It was 6.50 in the previous year, 1741. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1742 CPI is less than 1741 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -10.77% Converted amount (\$1 base) \$0.89 Price difference (\$1 base) \$-0.11 CPI in 1741 6.500 CPI in 1742 5.800 Inflation in 1741 66.67% Inflation in 1742 -10.77%

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 1741 and 1742.

Compare these values to the overall average of -10.77% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1741 → 1742
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 1741. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1741 to 1742

This inflation calculator uses the following inflation rate formula:

CPI in 1742CPI in 1741
×
1741 USD value
=
1742 USD value

Then plug in historical CPI values. The U.S. CPI was 6.5 in the year 1741 and 5.8 in 1742:

5.86.5
×
\$1
=
\$0.89

\$1 in 1741 has the same "purchasing power" or "buying power" as \$0.89 in 1742.

To get the total inflation rate for the 1 years between 1741 and 1742, we use the following formula:

CPI in 1742 - CPI in 1741CPI in 1741
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

5.8 - 6.56.5
×
100
=
-11%

### 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 1742 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 Mar. 2020, https://www.officialdata.org/inflation-rate-in-1742.