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# U.S. inflation rate in 1806: 4.27%

### Inflation in 1806 and Its Effect on Dollar Value

Purchasing power decreased by 4.27% in 1806 compared to 1805. On average, you would have to spend 4.27% more money in 1806 than in 1805 for the same item.

In other words, \$1 in 1805 is equivalent in purchasing power to about \$1.04 in 1806.

The 1805 inflation rate was -0.85%. The inflation rate in 1806 was 4.27%. The 1806 inflation rate is higher compared to the average inflation rate of 1.43% per year between 1806 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1806 was 12.20. It was 11.70 in the previous year, 1805. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.

 Average inflation rate 4.27% Converted amount (\$1 base) \$1.04 Price difference (\$1 base) \$0.04 CPI in 1805 11.700 CPI in 1806 12.200 Inflation in 1805 -0.85% Inflation in 1806 4.27%

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 1805 would be equivalent to £0.96 in 1806, an absolute change of £-0.04 and a cumulative change of -3.82%.

Compare these numbers to the US's overall absolute change of \$0.04 and total percent change of 4.27%.

### 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 1805 and 1806.

Compare these values to the overall average of 4.27% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1805 → 1806
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 1805. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1805 to 1806

This inflation calculator uses the following inflation rate formula:

CPI in 1806CPI in 1805
×
1805 USD value
=
1806 USD value

Then plug in historical CPI values. The U.S. CPI was 11.7 in the year 1805 and 12.2 in 1806:

12.211.7
×
\$1
=
\$1.04

\$1 in 1805 has the same "purchasing power" or "buying power" as \$1.04 in 1806.

To get the total inflation rate for the 1 years between 1805 and 1806, we use the following formula:

CPI in 1806 - CPI in 1805CPI in 1805
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

12.2 - 11.711.7
×
100
=
4%

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

• The British navy, led by Admiral Horatio Nelson, defeat the French and Spanish fleet in the Battle of Trafalgar. Admiral Nelson is killed during battle.
• The American West is crossed for the first time when an expedition, led by Lewis Clark, reaches the Pacific Ocean
• The Rocky Mountains are seen for the first time by Lewis and Clark on their expedition.

### 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 1806 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 24 Jan. 2020, https://www.officialdata.org/inflation-rate-in-1806.