$1 in 1920 is worth $0.76 in 1918

Buying power of $1 in 1918

This chart shows a calculation of buying power equivalence for $1 in 1918 (price index tracking began in 1635).

For example, if you started with $1, you would need to end with $0.76 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $1 is equivalent to $0.76 over time, that means that the "real value" of a single U.S. dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1918 dollars, the chart below shows how $1 is worth less over 2 years.

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:

This conversion table shows various other 1918 amounts in 1920 dollars, based on the -24.50% change in prices:

Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1920 to 1918 (figures shown are purchasing power equivalents of $1):

• Seattle, Washington: 24.90% average rate, $1 → $1.56, cumulative change of 55.99%
• Detroit, Michigan: 21.69% average rate, $1 → $1.48, cumulative change of 48.08%
• Chicago, Illinois: 20.22% average rate, $1 → $1.45, cumulative change of 44.54%
• San Francisco, California: 19.69% average rate, $1 → $1.43, cumulative change of 43.26%
• New York: 19.66% average rate, $1 → $1.43, cumulative change of 43.18%
• Houston, Texas: 19.38% average rate, $1 → $1.43, cumulative change of 42.52%
• Boston, Massachusetts: 19.24% average rate, $1 → $1.42, cumulative change of 42.19%
• Atlanta, Georgia: 19.06% average rate, $1 → $1.42, cumulative change of 41.75%
• Philadelphia, Pennsylvania: 19.00% average rate, $1 → $1.42, cumulative change of 41.60%

Seattle, Washington experienced the highest rate of inflation during the 2 years between 1918 and 1920 (24.90%).

Philadelphia, Pennsylvania experienced the lowest rate of inflation during the 2 years between 1918 and 1920 (19.00%).

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 1920 would be equivalent to £0.79 in 1918, an absolute change of £-0.21 and a cumulative change of -21.34%.

In Canada, CA$1.00 in 1920 would be equivalent to CA$0.79 in 1918, an absolute change of CA$-0.21 and a cumulative change of -21.50%.

Compare these numbers to the US's overall absolute change of $-0.24 and total percent change of -24.50%.

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 1920 and 1918.

Compare these values to the overall average of 15.09% per year:

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 1920. This table and charts use the earliest available data for each category.

How to calculate inflation rate for $1, 1918 to 1920

Our calculations use the following inflation rate formula to calculate the change in value between 1918 and 1920:

Then plug in historical CPI values. The U.S. CPI was 20 in the year 1920 and 15.1 in 1918:

$1 in 1920 has the same "purchasing power" or "buying power" as $0.76 in 1918.

To get the total inflation rate for the 2 years between 1918 and 1920, we use the following formula:

Plugging in the values to this equation, we get:

Data source & citation

Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (CPI), established in 1913. Price index data from 1774 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University and from the American Antiquarian Society. Price index data from 1634 to 1773 is from the American Antiquarian Society, using British pound equivalents.

» Read more about inflation and investment.