# \$1 in 1925 is worth \$0.98 in 1928

\$

## Value of \$1 from 1925 to 1928

According to the Bureau of Labor Statistics consumer price index, prices in 1928 are 2.29% lower than average prices since 1925. The U.S. dollar experienced an average deflation rate of -0.77% per year during this period, causing the real value of a dollar to increase.

In other words, \$1 in 1925 is equivalent in purchasing power to about \$0.98 in 1928, a difference of \$-0.02 over 3 years.

The 1925 inflation rate was 2.34%. The inflation rate in 1928 was -1.72%. The 1928 inflation rate is lower compared to the average inflation rate of 2.99% per year between 1928 and 2020.

 Cumulative price change -2.29% Average inflation rate -0.77% Converted amount (\$1 base) \$0.98 Price difference (\$1 base) \$-0.02 CPI in 1925 17.500 CPI in 1928 17.100 Inflation in 1925 2.34% Inflation in 1928 -1.72%

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

## Buying power of \$1 in 1925

This chart shows a calculation of buying power equivalence for \$1 in 1925 (price index tracking began in 1635).

For example, if you started with \$1, you would need to end with \$0.98 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: 1925-1928
Year Dollar Value Inflation Rate
1925 \$1.00 2.34%
1926 \$1.01 1.14%
1927 \$0.99 -1.69%
1928 \$0.98 -1.72%
1929 \$0.98 0.00%
1930 \$0.95 -2.34%
1931 \$0.87 -8.98%
1932 \$0.78 -9.87%
1933 \$0.74 -5.11%
1934 \$0.77 3.08%
1935 \$0.78 2.24%
1936 \$0.79 1.46%
1937 \$0.82 3.60%
1938 \$0.81 -2.08%
1939 \$0.79 -1.42%
1940 \$0.80 0.72%
1941 \$0.84 5.00%
1942 \$0.93 10.88%
1943 \$0.99 6.13%
1944 \$1.01 1.73%
1945 \$1.03 2.27%
1946 \$1.11 8.33%
1947 \$1.27 14.36%
1948 \$1.38 8.07%
1949 \$1.36 -1.24%
1950 \$1.38 1.26%
1951 \$1.49 7.88%
1952 \$1.51 1.92%
1953 \$1.53 0.75%
1954 \$1.54 0.75%
1955 \$1.53 -0.37%
1956 \$1.55 1.49%
1957 \$1.61 3.31%
1958 \$1.65 2.85%
1959 \$1.66 0.69%
1960 \$1.69 1.72%
1961 \$1.71 1.01%
1962 \$1.73 1.00%
1963 \$1.75 1.32%
1964 \$1.77 1.31%
1965 \$1.80 1.61%
1966 \$1.85 2.86%
1967 \$1.91 3.09%
1968 \$1.99 4.19%
1969 \$2.10 5.46%
1970 \$2.22 5.72%
1971 \$2.31 4.38%
1972 \$2.39 3.21%
1973 \$2.54 6.22%
1974 \$2.82 11.04%
1975 \$3.07 9.13%
1976 \$3.25 5.76%
1977 \$3.46 6.50%
1978 \$3.73 7.59%
1979 \$4.15 11.35%
1980 \$4.71 13.50%
1981 \$5.19 10.32%
1982 \$5.51 6.16%
1983 \$5.69 3.21%
1984 \$5.94 4.32%
1985 \$6.15 3.56%
1986 \$6.26 1.86%
1987 \$6.49 3.65%
1988 \$6.76 4.14%
1989 \$7.09 4.82%
1990 \$7.47 5.40%
1991 \$7.78 4.21%
1992 \$8.02 3.01%
1993 \$8.26 2.99%
1994 \$8.47 2.56%
1995 \$8.71 2.83%
1996 \$8.97 2.95%
1997 \$9.17 2.29%
1998 \$9.31 1.56%
1999 \$9.52 2.21%
2000 \$9.84 3.36%
2001 \$10.12 2.85%
2002 \$10.28 1.58%
2003 \$10.51 2.28%
2004 \$10.79 2.66%
2005 \$11.16 3.39%
2006 \$11.52 3.23%
2007 \$11.85 2.85%
2008 \$12.30 3.84%
2009 \$12.26 -0.36%
2010 \$12.46 1.64%
2011 \$12.85 3.16%
2012 \$13.12 2.07%
2013 \$13.31 1.46%
2014 \$13.53 1.62%
2015 \$13.54 0.12%
2016 \$13.71 1.26%
2017 \$14.01 2.13%
2018 \$14.36 2.49%
2019 \$14.61 1.76%
2020 \$14.65 0.29%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1925 amounts in 1928 dollars, based on the -2.29% change in prices:

Conversion Table: Value of a dollar in 1928
Initial value Equivalent value
\$1 dollar in 1925 \$0.98 dollars in 1928
\$5 dollars in 1925 \$4.89 dollars in 1928
\$10 dollars in 1925 \$9.77 dollars in 1928
\$50 dollars in 1925 \$48.86 dollars in 1928
\$100 dollars in 1925 \$97.71 dollars in 1928
\$500 dollars in 1925 \$488.57 dollars in 1928
\$1,000 dollars in 1925 \$977.14 dollars in 1928
\$5,000 dollars in 1925 \$4,885.71 dollars in 1928
\$10,000 dollars in 1925 \$9,771.43 dollars in 1928
\$50,000 dollars in 1925 \$48,857.14 dollars in 1928
\$100,000 dollars in 1925 \$97,714.29 dollars in 1928
\$500,000 dollars in 1925 \$488,571.43 dollars in 1928
\$1,000,000 dollars in 1925 \$977,142.86 dollars in 1928

## Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1925 to 1928 (figures shown are purchasing power equivalents of \$1):

Boston, Massachusetts experienced the highest rate of inflation during the 3 years between 1925 and 1928 (0.20%).

Detroit, Michigan experienced the lowest rate of inflation during the 3 years between 1925 and 1928 (-1.18%).

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 1925 would be equivalent to £0.97 in 1928, an absolute change of £-0.03 and a cumulative change of -3.23%.

In Canada, CA\$1.00 in 1925 would be equivalent to CA\$0.99 in 1928, an absolute change of CA\$-0.01 and a cumulative change of -1.08%.

Compare these numbers to the US's overall absolute change of \$-0.02 and total percent change of -2.29%.

## 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 1925 and 1928.

Compare these values to the overall average of -0.77% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1925 → 1928
Food and beverages 0.00 0.00 1.00
Housing 0.00 0.00 1.00
Apparel -1.72 -5.07 0.95
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 1925. This table and charts use the earliest available data for each category.

## How to Calculate Inflation Rate for \$1, 1925 to 1928

Our calculations use the following inflation rate formula to calculate the change in value between 1925 and 1928:

CPI in 1928 CPI in 1925
×
1925 USD value
=
1928 USD value

Then plug in historical CPI values. The U.S. CPI was 17.5 in the year 1925 and 17.1 in 1928:

17.117.5
×
\$1
=
\$0.98

\$1 in 1925 has the same "purchasing power" or "buying power" as \$0.98 in 1928.

To get the total inflation rate for the 3 years between 1925 and 1928, we use the following formula:

CPI in 1928 - CPI in 1925CPI in 1925
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

17.1 - 17.517.5
×
100
=
-2%

## Comparison to S&P 500 Index

The average inflation rate of -0.77% has a compounding effect between 1925 and 1928. As noted above, this yearly inflation rate compounds to produce an overall price difference of -2.29% over 3 years.

To help put this inflation into perspective, if we had invested \$1 in the S&P 500 index in 1925, our investment would be nominally worth approximately \$2.84 in 1928. This is a return on investment of 183.84%, with an absolute return of \$1.84 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 -2.34% of returns (\$-0.07) during this period. This means the inflation-adjusted real return of our \$1 investment is \$1.90. You may also want to account for capital gains tax, which would take your real return down to around \$2 for most people.

Investment in S&P 500 Index, 1925-1928
Original Amount Final Amount Change
Nominal \$1 \$2.84 183.84%
Real
\$1 \$2.90 190.48%

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 1925 to latest available data for 1928 using average monthly close price.

For more details on the S&P 500 between 1925 and 1928, see the stock market returns calculator.

## News headlines from 1925

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

• The Ku Klux Klan's first national march takes place in Washington.
• The last Qajar Shah of Iran is deposed with Reza Shah Pahlavi taking over.
• Scopes monkey trial ends in Dayton, Tennessee, finding John T. Scopes guilty of teaching evolution.

## 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 1925 → 1928 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 31 May. 2020, https://www.officialdata.org/us/inflation/1925?amount=1&endYear=1928.

Special thanks to QuickChart for providing downloadable chart images.

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

#### 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.

 Cumulative price change -2.29% Average inflation rate -0.77% Converted amount (\$1 base) \$0.98 Price difference (\$1 base) \$-0.02 CPI in 1925 17.500 CPI in 1928 17.100 Inflation in 1925 2.34% Inflation in 1928 -1.72%