# \$1 in 1895 is worth \$0.99 in 1898

\$

## Value of \$1 from 1895 to 1898

According to the Bureau of Labor Statistics consumer price index, prices in 1898 are 1.19% lower than average prices since 1895. The U.S. dollar experienced an average deflation rate of -0.40% per year during this period, causing the real value of a dollar to increase.

In other words, \$1 in 1895 is equivalent in purchasing power to about \$0.99 in 1898, a difference of \$-0.01 over 3 years.

The 1895 inflation rate was -2.33%. The inflation rate in 1898 was 0.00%. The 1898 inflation rate is lower compared to the average inflation rate of 2.86% per year between 1898 and 2020.

 Cumulative price change -1.19% Average inflation rate -0.40% Converted amount (\$1 base) \$0.99 Price difference (\$1 base) \$-0.01 CPI in 1895 8.400 CPI in 1898 8.300 Inflation in 1895 -2.33% Inflation in 1898 0.00%

USD Inflation since 1635
Annual Rate, the Bureau of Labor Statistics CPI

## Buying power of \$1 in 1895

This chart shows a calculation of buying power equivalence for \$1 in 1895 (price index tracking began in 1635).

For example, if you started with \$1, you would need to end with \$0.99 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

According to the Bureau of Labor Statistics, each of these USD amounts below is equal in terms of what it could buy at the time:

Dollar inflation: 1895-1898
Year Dollar Value Inflation Rate
1895 \$1.00 -2.33%
1896 \$1.00 0.00%
1897 \$0.99 -1.19%
1898 \$0.99 0.00%
1899 \$0.99 0.00%
1900 \$1.00 1.20%
1901 \$1.01 1.19%
1902 \$1.02 1.18%
1903 \$1.05 2.33%
1904 \$1.06 1.14%
1905 \$1.05 -1.12%
1906 \$1.07 2.27%
1907 \$1.12 4.44%
1908 \$1.10 -2.13%
1909 \$1.08 -1.09%
1910 \$1.13 4.40%
1911 \$1.13 0.00%
1912 \$1.15 2.11%
1913 \$1.18 2.06%
1914 \$1.19 1.01%
1915 \$1.20 1.00%
1916 \$1.30 7.92%
1917 \$1.52 17.43%
1918 \$1.80 17.97%
1919 \$2.06 14.57%
1920 \$2.38 15.61%
1921 \$2.13 -10.50%
1922 \$2.00 -6.15%
1923 \$2.04 1.79%
1924 \$2.04 0.00%
1925 \$2.08 2.34%
1926 \$2.11 1.14%
1927 \$2.07 -1.69%
1928 \$2.04 -1.72%
1929 \$2.04 0.00%
1930 \$1.99 -2.34%
1931 \$1.81 -8.98%
1932 \$1.63 -9.87%
1933 \$1.55 -5.11%
1934 \$1.60 3.08%
1935 \$1.63 2.24%
1936 \$1.65 1.46%
1937 \$1.71 3.60%
1938 \$1.68 -2.08%
1939 \$1.65 -1.42%
1940 \$1.67 0.72%
1941 \$1.75 5.00%
1942 \$1.94 10.88%
1943 \$2.06 6.13%
1944 \$2.10 1.73%
1945 \$2.14 2.27%
1946 \$2.32 8.33%
1947 \$2.65 14.36%
1948 \$2.87 8.07%
1949 \$2.83 -1.24%
1950 \$2.87 1.26%
1951 \$3.10 7.88%
1952 \$3.15 1.92%
1953 \$3.18 0.75%
1954 \$3.20 0.75%
1955 \$3.19 -0.37%
1956 \$3.24 1.49%
1957 \$3.35 3.31%
1958 \$3.44 2.85%
1959 \$3.46 0.69%
1960 \$3.52 1.72%
1961 \$3.56 1.01%
1962 \$3.60 1.00%
1963 \$3.64 1.32%
1964 \$3.69 1.31%
1965 \$3.75 1.61%
1966 \$3.86 2.86%
1967 \$3.98 3.09%
1968 \$4.14 4.19%
1969 \$4.37 5.46%
1970 \$4.62 5.72%
1971 \$4.82 4.38%
1972 \$4.98 3.21%
1973 \$5.29 6.22%
1974 \$5.87 11.04%
1975 \$6.40 9.13%
1976 \$6.77 5.76%
1977 \$7.21 6.50%
1978 \$7.76 7.59%
1979 \$8.64 11.35%
1980 \$9.81 13.50%
1981 \$10.82 10.32%
1982 \$11.49 6.16%
1983 \$11.86 3.21%
1984 \$12.37 4.32%
1985 \$12.81 3.56%
1986 \$13.05 1.86%
1987 \$13.52 3.65%
1988 \$14.08 4.14%
1989 \$14.76 4.82%
1990 \$15.56 5.40%
1991 \$16.21 4.21%
1992 \$16.70 3.01%
1993 \$17.20 2.99%
1994 \$17.64 2.56%
1995 \$18.14 2.83%
1996 \$18.68 2.95%
1997 \$19.11 2.29%
1998 \$19.40 1.56%
1999 \$19.83 2.21%
2000 \$20.50 3.36%
2001 \$21.08 2.85%
2002 \$21.42 1.58%
2003 \$21.90 2.28%
2004 \$22.49 2.66%
2005 \$23.25 3.39%
2006 \$24.00 3.23%
2007 \$24.68 2.85%
2008 \$25.63 3.84%
2009 \$25.54 -0.36%
2010 \$25.96 1.64%
2011 \$26.78 3.16%
2012 \$27.33 2.07%
2013 \$27.73 1.46%
2014 \$28.18 1.62%
2015 \$28.22 0.12%
2016 \$28.57 1.26%
2017 \$29.18 2.13%
2018 \$29.91 2.49%
2019 \$30.44 1.76%
2020 \$30.69 0.84%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1895 amounts in 1898 dollars, based on the -1.19% change in prices:

Conversion Table: Value of a dollar in 1898
Initial value Equivalent value
\$1 dollar in 1895 \$0.99 dollars in 1898
\$5 dollars in 1895 \$4.94 dollars in 1898
\$10 dollars in 1895 \$9.88 dollars in 1898
\$50 dollars in 1895 \$49.40 dollars in 1898
\$100 dollars in 1895 \$98.81 dollars in 1898
\$500 dollars in 1895 \$494.05 dollars in 1898
\$1,000 dollars in 1895 \$988.10 dollars in 1898
\$5,000 dollars in 1895 \$4,940.48 dollars in 1898
\$10,000 dollars in 1895 \$9,880.95 dollars in 1898
\$50,000 dollars in 1895 \$49,404.76 dollars in 1898
\$100,000 dollars in 1895 \$98,809.52 dollars in 1898
\$500,000 dollars in 1895 \$494,047.62 dollars in 1898
\$1,000,000 dollars in 1895 \$988,095.24 dollars in 1898

## Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1895 would be equivalent to £1.01 in 1898, an absolute change of £0.01 and a cumulative change of 1.16%.

Compare these numbers to the US's overall absolute change of \$-0.01 and total percent change of -1.19%.

## 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 1895 and 1898.

Compare these values to the overall average of -0.40% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1895 → 1898
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

The graph below compares inflation in categories of goods over time. Click on a category such as "Food" to toggle it on or off:

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 1898

Our calculations use the following inflation rate formula to calculate the change in value between 1895 and 1898:

CPI in 1898 CPI in 1895
×
1895 USD value
=
1898 USD value

Then plug in historical CPI values. The U.S. CPI was 8.4 in the year 1895 and 8.3 in 1898:

8.38.4
×
\$1
=
\$0.99

\$1 in 1895 has the same "purchasing power" or "buying power" as \$0.99 in 1898.

To get the total inflation rate for the 3 years between 1895 and 1898, we use the following formula:

CPI in 1898 - CPI in 1895CPI in 1895
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

8.3 - 8.48.4
×
100
=
-1%

## Comparison to S&P 500 Index

The average inflation rate of -0.40% has a compounding effect between 1895 and 1898. As noted above, this yearly inflation rate compounds to produce an overall price difference of -1.19% over 3 years.

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 \$1.69 in 1898. This is a return on investment of 68.71%, with an absolute return of \$0.69 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 -1.20% of returns (\$-0.02) during this period. This means the inflation-adjusted real return of our \$1 investment is \$0.71. 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, 1895-1898
Original Amount Final Amount Change
Nominal \$1 \$1.69 68.71%
Real
\$1 \$1.71 70.74%

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 1898 using average monthly close price.

For more details on the S&P 500 between 1895 and 1898, 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: “\$1 in 1895 → 1898 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 11 Aug. 2020, https://www.officialdata.org/us/inflation/1895?amount=1&endYear=1898.

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.