U.S. inflation rate in 1786: -2.06%

Inflation in 1786 and its effect on dollar value

$1 in 1785 is equivalent in purchasing power to about $0.98 in 1786. The dollar had an average deflation rate of -2.06% per year since 1785, producing a cumulative price change of -2.06%. Purchasing power increased by 2.06% in 1786 compared to 1785. On average, you would have to spend 2.06% less money in 1786 than in 1785 for the same item. This is an example of deflation.

This means that prices in 1786 are 2.06% lower than average prices since 1785, according to the Bureau of Labor Statistics consumer price index.

The inflation rate in 1785 was -4.90%. The inflation rate in 1786 was -2.06%. The 1786 inflation rate is lower compared to the average inflation rate of 1.47% per year between 1786 and 2022.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1786 was 9.50. It was 9.70 in the previous year, 1785. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1786 CPI is less than 1785 CPI, negative inflation (also known as deflation) has occurred.


Inflation from 1785 to 1786
Average inflation rate-2.06%
Converted amount ($1 base)$0.98
Price difference ($1 base)$-0.02
CPI in 17859.700
CPI in 17869.500
Inflation in 1785-4.90%
Inflation in 1786-2.06%
$1 in 1785$0.98 in 1786

Recent USD inflation
Annual Rate, the Bureau of Labor Statistics CPI
Download

Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1785 would be equivalent to £1.00 in 1786, an absolute change of £0.00 and a cumulative change of 0.00%.

Compare these numbers to the US's overall absolute change of $-0.02 and total percent change of -2.06%.


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 1785 and 1786.

Compare these values to the overall average of -2.06% per year:

CategoryAvg Inflation (%)Total Inflation (%)$1 in 1785 → 1786
Food and beverages0.000.001.00
Housing0.000.001.00
Apparel0.000.001.00
Transportation0.000.001.00
Medical care0.000.001.00
Recreation0.000.001.00
Education and communication0.000.001.00
Other goods and services0.000.001.00

For all these visualizations, it's important to note that not all categories may have been tracked since 1785. This table and charts use the earliest available data for each category.



How to calculate inflation rate for $1, 1785 to 1786

Our calculations use the following inflation rate formula to calculate the change in value between 1785 and 1786:

CPI in 1786 CPI in 1785
×
1785 USD value
=
1786 USD value

Then plug in historical CPI values. The U.S. CPI was 9.7 in the year 1785 and 9.5 in 1786:

9.59.7
×
$1
=
$0.98

$1 in 1785 has the same "purchasing power" or "buying power" as $0.98 in 1786.

To get the total inflation rate for the 1 years between 1785 and 1786, we use the following formula:

CPI in 1786 - CPI in 1785CPI in 1785
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

9.5 - 9.79.7
×
100
=
-2%

Data source & citation

Raw data for these calculations comes from the Bureau of Labor Statistics' (CPI), established in 1913. Inflation data from 1634 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University and from the American Antiquarian Society.

You may use the following MLA citation for this page: “Inflation Rate in 1786 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Nov. 2022, https://www.officialdata.org/inflation-rate-in-1786.

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.


Ian Webster

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.

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Inflation from 1785 to 1786
Average inflation rate-2.06%
Converted amount ($1 base)$0.98
Price difference ($1 base)$-0.02
CPI in 17859.700
CPI in 17869.500
Inflation in 1785-4.90%
Inflation in 1786-2.06%
$1 in 1785$0.98 in 1786