# U.S. inflation rate in 1847: 6.49%

## Inflation Calculator

\$

### Inflation in 1847 and Its Effect on Dollar Value

Purchasing power decreased by 6.49% in 1847 compared to 1846. On average, you would have to spend 6.49% more money in 1847 than in 1846 for the same item.

In other words, \$1 in 1846 is equivalent in purchasing power to about \$1.06 in 1847.

The 1846 inflation rate was 1.32%. The inflation rate in 1847 was 6.49%. The 1847 inflation rate is higher compared to the average inflation rate of 2.02% per year between 1847 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1847 was 8.20. It was 7.70 in the previous year, 1846. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.

 Average inflation rate 6.49% Converted amount (\$1 base) \$1.06 Price difference (\$1 base) \$0.06 CPI in 1846 7.700 CPI in 1847 8.200 Inflation in 1846 1.32% Inflation in 1847 6.49%

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 1846 would be equivalent to £1.12 in 1847, an absolute change of £0.12 and a cumulative change of 12.37%.

Compare these numbers to the US's overall absolute change of \$0.06 and total percent change of 6.49%.

### 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 1846 and 1847.

Compare these values to the overall average of 6.49% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1846 → 1847
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 1846. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1846 to 1847

This inflation calculator uses the following inflation rate formula:

CPI in 1847CPI in 1846
×
1846 USD value
=
1847 USD value

Then plug in historical CPI values. The U.S. CPI was 7.7 in the year 1846 and 8.2 in 1847:

8.27.7
×
\$1
=
\$1.06

\$1 in 1846 has the same "purchasing power" or "buying power" as \$1.06 in 1847.

To get the total inflation rate for the 1 years between 1846 and 1847, we use the following formula:

CPI in 1847 - CPI in 1846CPI in 1846
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.2 - 7.77.7
×
100
=
6%

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

• Mexican-American war begins over conflict about the Texas border.
• Smithsonian Institution established by an Act of Congress.
• American dentist Dr William Morton used anaesthetic for the first time, while extracting a tooth.
• Michigan abolishes the death penalty for all crimes except treason.

### 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 1847 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 4 Apr. 2020, https://www.officialdata.org/inflation-rate-in-1847.