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

## Inflation Calculator

\$

### Inflation in 1786 and Its Effect on Dollar Value

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.

In other words, \$1 in 1785 is equivalent in purchasing power to about \$0.98 in 1786.

The 1785 inflation rate was -4.90%. The inflation rate in 1786 was -2.06%. The 1786 inflation rate is lower compared to the average inflation rate of 1.42% per year between 1786 and 2020.

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.

 Average inflation rate -2.06% Converted amount (\$1 base) \$0.98 Price difference (\$1 base) \$-0.02 CPI in 1785 9.700 CPI in 1786 9.500 Inflation in 1785 -4.90% Inflation in 1786 -2.06%

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 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. 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:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1785 → 1786
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 1785. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1785 to 1786

This inflation calculator uses the following inflation rate formula:

CPI in 1786CPI 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%

### News headlines from 1785

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

• The Times is published for the first time by John Walter of London
• James Hutton's theory of uniformitarianism is read in public at the Royal Society of Edinburgh.
• US currency named "dollar" and decimal coinage adopted by Congressional resolution

### 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 1786 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 9 Apr. 2020, https://www.officialdata.org/inflation-rate-in-1786.

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 -2.06% Converted amount (\$1 base) \$0.98 Price difference (\$1 base) \$-0.02 CPI in 1785 9.700 CPI in 1786 9.500 Inflation in 1785 -4.90% Inflation in 1786 -2.06%