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# U.S. inflation rate in 1866: -2.45%

### Inflation in 1866 and Its Effect on Dollar Value

Purchasing power increased by 2.45% in 1866 compared to 1865. On average, you would have to spend 2.45% less money in 1866 than in 1865 for the same item. This is an example of deflation.

In other words, \$1 in 1865 is equivalent in purchasing power to about \$0.98 in 1866.

The 1865 inflation rate was 3.82%. The inflation rate in 1866 was -2.45%. The 1866 inflation rate is lower compared to the average inflation rate of 1.82% per year between 1866 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1866 was 15.90. It was 16.30 in the previous year, 1865. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1866 CPI is less than 1865 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -2.45% Converted amount (\$1 base) \$0.98 Price difference (\$1 base) \$-0.02 CPI in 1865 16.300 CPI in 1866 15.900 Inflation in 1865 3.82% Inflation in 1866 -2.45%

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 1865 would be equivalent to £1.06 in 1866, an absolute change of £0.06 and a cumulative change of 5.56%.

Compare these numbers to the US's overall absolute change of \$-0.02 and total percent change of -2.45%.

### 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 1865 and 1866.

Compare these values to the overall average of -2.45% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1865 → 1866
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 1865. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1865 to 1866

This inflation calculator uses the following inflation rate formula:

CPI in 1866CPI in 1865
×
1865 USD value
=
1866 USD value

Then plug in historical CPI values. The U.S. CPI was 16.3 in the year 1865 and 15.9 in 1866:

15.916.3
×
\$1
=
\$0.98

\$1 in 1865 has the same "purchasing power" or "buying power" as \$0.98 in 1866.

To get the total inflation rate for the 1 years between 1865 and 1866, we use the following formula:

CPI in 1866 - CPI in 1865CPI in 1865
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

15.9 - 16.316.3
×
100
=
-2%

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

• America abolishes slavery after Congress passes the 13th Amendment.
• John Wilkes Booth assassinates President Abraham Lincoln at Ford's Theater, in Washington.
• The New York Stock Exchange opens its first permanent headquarters at 10-12 Broad Street.
• Columbia, South Carolina burns during the American Civil War.

### 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 1866 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 26 Jan. 2020, https://www.officialdata.org/inflation-rate-in-1866.