# U.S. inflation rate in 1896: 0.00%

## Inflation Calculator

\$

### Inflation in 1896 and Its Effect on Dollar Value

Purchasing power decreased by 0.00% in 1896 compared to 1895. On average, you would have to spend 0.00% more money in 1896 than in 1895 for the same item.

In other words, \$1 in 1895 is equivalent in purchasing power to about \$1 in 1896.

The 1895 inflation rate was -2.33%. The inflation rate in 1896 was 0.00%. The 1896 inflation rate is lower compared to the average inflation rate of 2.80% per year between 1896 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1896 was 8.40. It was 8.40 in the previous year, 1895. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.

 Average inflation rate 0.00% Converted amount (\$1 base) \$1 Price difference (\$1 base) \$0.00 CPI in 1895 8.400 CPI in 1896 8.400 Inflation in 1895 -2.33% Inflation in 1896 0.00%

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 1895 would be equivalent to £0.99 in 1896, an absolute change of £-0.01 and a cumulative change of -1.16%.

Compare these numbers to the US's overall absolute change of \$0.00 and total percent change of 0.00%.

### 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 1895 and 1896.

Compare these values to the overall average of 0.00% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1895 → 1896
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 1895. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1895 to 1896

This inflation calculator uses the following inflation rate formula:

CPI in 1896CPI in 1895
×
1895 USD value
=
1896 USD value

Then plug in historical CPI values. The U.S. CPI was 8.4 in the year 1895 and 8.4 in 1896:

8.48.4
×
\$1
=
\$1

\$1 in 1895 has the same "purchasing power" or "buying power" as \$1 in 1896.

To get the total inflation rate for the 1 years between 1895 and 1896, we use the following formula:

CPI in 1896 - CPI in 1895CPI in 1895
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.4 - 8.48.4
×
100
=
0%

### Comparison to S&P 500 Index

To help put this inflation into perspective, if we had invested \$1 in the S&P 500 index in 1895, our investment would be nominally worth approximately \$1.08 in 1896. This is a return on investment of 8.40%, with an absolute return of \$0.08 on top of the original \$1.

These numbers are not inflation adjusted, so they are considered nominal. In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account.

The compounding effect of inflation would account for 0.00% of returns (\$0.00) during this period. This means the inflation-adjusted real return of our \$1 investment is \$0.08. You may also want to account for capital gains tax, which would take your real return down to around \$0 for most people.

Investment in S&P 500 Index, 1895-1896
Original Amount Final Amount Change
Nominal \$1 \$1.08 8.40%
Real
\$1 \$1.08 8.40%

Information displayed above may differ slightly from other S&P 500 calculators. Minor discrepancies can occur because we use the latest CPI data for inflation, annualized inflation numbers for previous years, and we compute S&P price and dividends from January of 1895 to latest available data for 1896 using average monthly close price.

For more details on the S&P 500 between 1895 and 1896, see the stock market returns calculator.

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

• Italy invades Abyssinia (Ethiopia today).
• First Sino-Japanese war finishes after signing the Treaty of Shimonoseki.
• Electromagnetic radiation in a wavelength range today known as X-rays were produced by Wilhelm Rontgen, a German physicist.
• The Nobel Prize is established in the will of Swedish chemist Alfred Nobel.

### 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 1896 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 2 Apr. 2020, https://www.officialdata.org/inflation-rate-in-1896.