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# U.S. inflation rate in 1955: -0.37%

### Inflation in 1955 and Its Effect on Dollar Value

Purchasing power increased by 0.37% in 1955 compared to 1954. On average, you would have to spend 0.37% less money in 1955 than in 1954 for the same item. This is an example of deflation.

In other words, \$1 in 1954 is equivalent in purchasing power to about \$1.00 in 1955.

The 1954 inflation rate was 0.75%. The inflation rate in 1955 was -0.37%. The 1955 inflation rate is lower compared to the average inflation rate of 3.54% per year between 1955 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1955 was 26.80. It was 26.90 in the previous year, 1954. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1955 CPI is less than 1954 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -0.37% Converted amount (\$1 base) \$1.00 Price difference (\$1 base) \$0.00 CPI in 1954 26.900 CPI in 1955 26.800 Inflation in 1954 0.75% Inflation in 1955 -0.37%

USD Inflation since 1913
Annual Rate, the Bureau of Labor Statistics CPI

### Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1954 to 1955 (figures shown are purchasing power equivalents of \$1):

Chicago, Illinois experienced the highest rate of inflation during the 1 years between 1954 and 1955 (0.67%).

Houston, Texas experienced the lowest rate of inflation during the 1 years between 1954 and 1955 (-0.90%).

Note that some locations showing 0% inflation may have not yet reported latest data.

### Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1954 would be equivalent to £1.04 in 1955, an absolute change of £0.04 and a cumulative change of 4.36%.

In Canada, CA\$1.00 in 1954 would be equivalent to CA\$1.01 in 1955, an absolute change of CA\$0.01 and a cumulative change of 0.71%.

Compare these numbers to the US's overall absolute change of \$0.00 and total percent change of -0.37%.

### 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 1954 and 1955.

Compare these values to the overall average of -0.37% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1954 → 1955
Food and beverages 0.00 0.00 1.00
Housing 0.00 0.00 1.00
Apparel -0.32 -0.32 1.00
Transportation -1.21 -1.21 0.99
Medical care 2.38 2.38 1.02
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 1954. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1, 1954 to 1955

This inflation calculator uses the following inflation rate formula:

CPI in 1955CPI in 1954
×
1954 USD value
=
1955 USD value

Then plug in historical CPI values. The U.S. CPI was 26.9 in the year 1954 and 26.8 in 1955:

26.826.9
×
\$1
=
\$1.00

\$1 in 1954 has the same "purchasing power" or "buying power" as \$1.00 in 1955.

To get the total inflation rate for the 1 years between 1954 and 1955, we use the following formula:

CPI in 1955 - CPI in 1954CPI in 1954
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

26.8 - 26.926.9
×
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 1954, our investment would be nominally worth approximately \$1.89 in 1955. This is a return on investment of 89.23%, with an absolute return of \$0.89 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 -0.37% of returns (\$-0.01) during this period. This means the inflation-adjusted real return of our \$1 investment is \$0.90. You may also want to account for capital gains tax, which would take your real return down to around \$1 for most people.

Investment in S&P 500 Index, 1954-1955
Original Amount Final Amount Change
Nominal \$1 \$1.89 89.23%
Real
\$1 \$1.90 89.93%

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 1954 to latest available data for 1955 using average monthly close price.

For more details on the S&P 500 between 1954 and 1955, see the stock market returns calculator.

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

• IBM gives the first public demonstration of a machine translation system in their New York, head office.
• Colonel Gamal Abdal Nasser becomes Prime Minister of Egypt.
• 7 years of fighting ends in Indochina after a formal peace agreement is made between the French and the Communist Viet Minh.

### 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 1955 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 26 Jan. 2020, https://www.officialdata.org/inflation-rate-in-1955.