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# U.S. inflation rate in 1825: 2.06%

### Inflation in 1825 and Its Effect on Dollar Value

Purchasing power decreased by 2.06% in 1825 compared to 1824. On average, you would have to spend 2.06% more money in 1825 than in 1824 for the same item.

In other words, \$1 in 1824 is equivalent in purchasing power to about \$1.02 in 1825.

The 1824 inflation rate was -7.62%. The inflation rate in 1825 was 2.06%. The 1825 inflation rate is higher compared to the average inflation rate of 1.68% per year between 1825 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1825 was 9.90. It was 9.70 in the previous year, 1824. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.

 Average inflation rate 2.06% Converted amount (\$1 base) \$1.02 Price difference (\$1 base) \$0.02 CPI in 1824 9.700 CPI in 1825 9.900 Inflation in 1824 -7.62% Inflation in 1825 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 1824 would be equivalent to £1.17 in 1825, an absolute change of £0.17 and a cumulative change of 17.48%.

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 1824 and 1825.

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

Category Avg Inflation (%) Total Inflation (%) \$1 in 1824 → 1825
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 1824. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1824 to 1825

This inflation calculator uses the following inflation rate formula:

CPI in 1825CPI in 1824
×
1824 USD value
=
1825 USD value

Then plug in historical CPI values. The U.S. CPI was 9.7 in the year 1824 and 9.9 in 1825:

9.99.7
×
\$1
=
\$1.02

\$1 in 1824 has the same "purchasing power" or "buying power" as \$1.02 in 1825.

To get the total inflation rate for the 1 years between 1824 and 1825, we use the following formula:

CPI in 1825 - CPI in 1824CPI in 1824
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

9.9 - 9.79.7
×
100
=
2%

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

• Congress of Peru declares Simon Bolivar a dictator
• North America claims south of 54° 40'N abandoned by Russia
• Psara in the Aegean Sea is captured by the Egyptians during the Greek War of Independence

### 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 1825 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 29 Jan. 2020, https://www.officialdata.org/inflation-rate-in-1825.