U.S. inflation rate in 1966: 2.86%

Inflation in 1966 and its effect on dollar value

Purchasing power decreased by 2.86% in 1966 compared to 1965. On average, you would have to spend 2.86% more money in 1966 than in 1965 for the same item.

In other words, $1 in 1965 is equivalent in purchasing power to about $1.03 in 1966.

The 1965 inflation rate was 1.61%. The inflation rate in 1966 was 2.86%. The 1966 inflation rate is lower compared to the average inflation rate of 3.93% per year between 1966 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1966 was 32.40. It was 31.50 in the previous year, 1965. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.

Inflation from 1965 to 1966
Average inflation rate 2.86%
Converted amount ($1 base) $1.03
Price difference ($1 base) $0.03
CPI in 1965 31.500
CPI in 1966 32.400
Inflation in 1965 1.61%
Inflation in 1966 2.86%

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 1965 to 1966 (figures shown are purchasing power equivalents of $1):

Detroit, Michigan experienced the highest rate of inflation during the 1 years between 1965 and 1966 (4.44%).

San Francisco, California experienced the lowest rate of inflation during the 1 years between 1965 and 1966 (2.44%).

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 1965 would be equivalent to £1.04 in 1966, an absolute change of £0.04 and a cumulative change of 3.94%.

In Canada, CA$1.00 in 1965 would be equivalent to CA$1.04 in 1966, an absolute change of CA$0.04 and a cumulative change of 3.51%.

Compare these numbers to the US's overall absolute change of $0.03 and total percent change of 2.86%.

Inflation by Spending Category

CPI is the weighted combination of many categories of spending that are tracked by the government. Breaking down these categories helps explain the main drivers behind price changes. This chart shows the average rate of inflation for select CPI categories between 1965 and 1966.

Compare these values to the overall average of 2.86% per year:

Category Avg Inflation (%) Total Inflation (%) $1 in 1965 → 1966
Food and beverages 0.00 0.00 1.00
Housing 0.00 0.00 1.00
Apparel 2.67 2.67 1.03
Transportation 1.42 1.42 1.01
Medical care 4.43 4.43 1.04
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 1965. This table and charts use the earliest available data for each category.

How to Calculate Inflation Rate for $1, 1965 to 1966

Our calculations use the following inflation rate formula to calculate the change in value between 1965 and 1966:

CPI in 1966 CPI in 1965
1965 USD value
1966 USD value

Then plug in historical CPI values. The U.S. CPI was 31.5 in the year 1965 and 32.4 in 1966:


$1 in 1965 has the same "purchasing power" or "buying power" as $1.03 in 1966.

To get the total inflation rate for the 1 years between 1965 and 1966, we use the following formula:

CPI in 1966 - CPI in 1965CPI in 1965
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

32.4 - 31.531.5

Alternate Measurements of Inflation

The above data describe the CPI for all items. Also of note is the Core CPI, which measures inflation for all items except for the more volatile categories of food and energy. Core inflation averaged 2.44% per year between 1965 and 1966 (vs all-CPI inflation of 2.86%), for an inflation total of 2.44%.

When using the core inflation measurement, $1 in 1965 is equivalent in buying power to $1.02 in 1966, a difference of $0.02. Recall that for All Items, the converted amount is $1.03 with a difference of $0.03.

In 1965, core inflation was 1.43%.

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 1965, our investment would be nominally worth approximately $1.04 in 1966. This is a return on investment of 4.44%, with an absolute return of $0.04 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 2.78% of returns ($0.03) during this period. This means the inflation-adjusted real return of our $1 investment is $0.02. 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, 1965-1966
Original Amount Final Amount Change
Nominal $1 $1.04 4.44%
Inflation Adjusted
$1 $1.02 1.54%

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 1965 to latest available data for 1966 using average monthly close price.

For more details on the S&P 500 between 1965 and 1966, see the stock market returns calculator.

News headlines from 1965

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

  • Aleksei Leonov, a Soviet cosmonaut, makes the first Spacewalk, when he leaves the Hos spacecraft for 12 minutes.
  • Winston Churchill, is given the largest state funeral ever, it takes place in St Paul's Cathedral, London.
  • The Supreme Court legalises the use of contraception by married couples.
  • France becomes the third nation in space, after launching its first satellite.
  • Lyndon B. Johnson, US President, signs the Voting Rights Act, making voting discrimination against minorities illegal.

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 1966 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 13 Oct. 2020, https://www.officialdata.org/inflation-rate-in-1966.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

in2013dollars.com is a reference website maintained by the Official Data Foundation.

Ian Webster

About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

Email · LinkedIn · Twitter

» Read more about inflation and investment.

Inflation from 1965 to 1966
Average inflation rate 2.86%
Converted amount ($1 base) $1.03
Price difference ($1 base) $0.03
CPI in 1965 31.500
CPI in 1966 32.400
Inflation in 1965 1.61%
Inflation in 1966 2.86%