# U.S. inflation rate in 1776: 12.99%

## Inflation Calculator

\$

### Inflation in 1776 and Its Effect on Dollar Value

Purchasing power decreased by 12.99% in 1776 compared to 1775. On average, you would have to spend 12.99% more money in 1776 than in 1775 for the same item.

In other words, \$1 in 1775 is equivalent in purchasing power to about \$1.13 in 1776.

The 1775 inflation rate was -4.94%. The inflation rate in 1776 was 12.99%. The 1776 inflation rate is higher compared to the average inflation rate of 1.40% per year between 1776 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1776 was 8.70. It was 7.70 in the previous year, 1775. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.

 Average inflation rate 12.99% Converted amount (\$1 base) \$1.13 Price difference (\$1 base) \$0.13 CPI in 1775 7.700 CPI in 1776 8.700 Inflation in 1775 -4.94% Inflation in 1776 12.99%

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

### Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1775 would be equivalent to £0.99 in 1776, an absolute change of £-0.01 and a cumulative change of -1.43%.

Compare these numbers to the US's overall absolute change of \$0.13 and total percent change of 12.99%.

### 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 1775 and 1776.

Compare these values to the overall average of 12.99% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1775 → 1776
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 1775. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1775 to 1776

This inflation calculator uses the following inflation rate formula:

CPI in 1776CPI in 1775
×
1775 USD value
=
1776 USD value

Then plug in historical CPI values. The U.S. CPI was 7.7 in the year 1775 and 8.7 in 1776:

8.77.7
×
\$1
=
\$1.13

\$1 in 1775 has the same "purchasing power" or "buying power" as \$1.13 in 1776.

To get the total inflation rate for the 1 years between 1775 and 1776, we use the following formula:

CPI in 1776 - CPI in 1775CPI in 1775
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.7 - 7.77.7
×
100
=
13%

### 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 1776 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 26 Mar. 2020, https://www.officialdata.org/inflation-rate-in-1776.

Special thanks to QuickChart for providing downloadable chart images.

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

#### About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

 Average inflation rate 12.99% Converted amount (\$1 base) \$1.13 Price difference (\$1 base) \$0.13 CPI in 1775 7.700 CPI in 1776 8.700 Inflation in 1775 -4.94% Inflation in 1776 12.99%