# \$1 in 1975 is worth \$0.83 in 1973

\$

## Value of \$1 from 1975 to 1973

\$1 in 1975 is equivalent in purchasing power to about \$0.83 in 1973, an increase of \$-0.17 over 2 years. The dollar had an average inflation rate of 10.08% per year between 1973 and 1975, producing a cumulative price increase of -17.47%.

This means that prices in 1973 are 17.47% lower than average prices since 1975, according to the Bureau of Labor Statistics consumer price index.

The 1973 inflation rate was 6.22%. The inflation rate in 1975 was 9.13%. The 1975 inflation rate is higher compared to the average inflation rate of 3.56% per year between 1975 and 2021.

 Cumulative price change -17.47% Average inflation rate 10.08% Converted amount (\$1 base) \$0.83 Price difference (\$1 base) \$-0.17 CPI in 1975 53.800 CPI in 1973 44.400 Inflation in 1973 6.22% Inflation in 1975 9.13% \$1 in 1975 \$0.83 in 1973

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

## Buying power of \$1 in 1973

This chart shows a calculation of buying power equivalence for \$1 in 1973 (price index tracking began in 1635).

For example, if you started with \$1, you would need to end with \$0.83 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.83 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 1973 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:

Dollar inflation: 1973-1975
Year Dollar Value Inflation Rate
1973 \$1.00 6.22%
1974 \$1.11 11.04%
1975 \$1.21 9.13%
1976 \$1.28 5.76%
1977 \$1.36 6.50%
1978 \$1.47 7.59%
1979 \$1.64 11.35%
1980 \$1.86 13.50%
1981 \$2.05 10.32%
1982 \$2.17 6.16%
1983 \$2.24 3.21%
1984 \$2.34 4.32%
1985 \$2.42 3.56%
1986 \$2.47 1.86%
1987 \$2.56 3.65%
1988 \$2.66 4.14%
1989 \$2.79 4.82%
1990 \$2.94 5.40%
1991 \$3.07 4.21%
1992 \$3.16 3.01%
1993 \$3.25 2.99%
1994 \$3.34 2.56%
1995 \$3.43 2.83%
1996 \$3.53 2.95%
1997 \$3.61 2.29%
1998 \$3.67 1.56%
1999 \$3.75 2.21%
2000 \$3.88 3.36%
2001 \$3.99 2.85%
2002 \$4.05 1.58%
2003 \$4.14 2.28%
2004 \$4.25 2.66%
2005 \$4.40 3.39%
2006 \$4.54 3.23%
2007 \$4.67 2.85%
2008 \$4.85 3.84%
2009 \$4.83 -0.36%
2010 \$4.91 1.64%
2011 \$5.07 3.16%
2012 \$5.17 2.07%
2013 \$5.25 1.46%
2014 \$5.33 1.62%
2015 \$5.34 0.12%
2016 \$5.41 1.26%
2017 \$5.52 2.13%
2018 \$5.66 2.49%
2019 \$5.76 1.76%
2020 \$5.83 1.23%
2021 \$6.06 4.01%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1973 amounts in 1975 dollars, based on the -17.47% change in prices:

Conversion: 1973 dollars in 1975
Initial value Equivalent value
\$1 dollar in 1973 \$1.21 dollars in 1975
\$5 dollars in 1973 \$6.06 dollars in 1975
\$10 dollars in 1973 \$12.12 dollars in 1975
\$50 dollars in 1973 \$60.59 dollars in 1975
\$100 dollars in 1973 \$121.17 dollars in 1975
\$500 dollars in 1973 \$605.86 dollars in 1975
\$1,000 dollars in 1973 \$1,211.71 dollars in 1975
\$5,000 dollars in 1973 \$6,058.56 dollars in 1975
\$10,000 dollars in 1973 \$12,117.12 dollars in 1975
\$50,000 dollars in 1973 \$60,585.59 dollars in 1975
\$100,000 dollars in 1973 \$121,171.17 dollars in 1975
\$500,000 dollars in 1973 \$605,855.86 dollars in 1975
\$1,000,000 dollars in 1973 \$1,211,711.71 dollars in 1975

## Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1975 to 1973 (figures shown are purchasing power equivalents of \$1):

Houston, Texas experienced the highest rate of inflation during the 2 years between 1973 and 1975 (11.67%).

Detroit, Michigan experienced the lowest rate of inflation during the 2 years between 1973 and 1975 (9.13%).

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 1975 would be equivalent to £0.69 in 1973, an absolute change of £-0.31 and a cumulative change of -30.64%.

In Canada, CA\$1.00 in 1975 would be equivalent to CA\$0.81 in 1973, an absolute change of CA\$-0.19 and a cumulative change of -18.87%.

Compare these numbers to the US's overall absolute change of \$-0.17 and total percent change of -17.47%.

## 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 1975 and 1973.

Compare these values to the overall average of 10.08% per year:

Category Avg Inflation (%) Total Inflation (%) \$1 in 1973 → 1975
Food and beverages 11.07 23.36 1.23
Housing 10.92 23.02 1.23
Apparel 5.92 12.20 1.12
Transportation 10.29 21.65 1.22
Medical care 10.67 22.48 1.22
Recreation 0.00 0.00 1.00
Education and communication 0.00 0.00 1.00
Other goods and services 7.76 16.12 1.16

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 1975. This table and charts use the earliest available data for each category.

## How to Calculate Inflation Rate for \$1, 1973 to 1975

Our calculations use the following inflation rate formula to calculate the change in value between 1973 and 1975:

CPI in 1973 CPI in 1975
×
1975 USD value
=
1973 USD value

Then plug in historical CPI values. The U.S. CPI was 53.8 in the year 1975 and 44.4 in 1973:

44.453.8
×
\$1
=
\$0.83

\$1 in 1975 has the same "purchasing power" or "buying power" as \$0.83 in 1973.

To get the total inflation rate for the 2 years between 1973 and 1975, we use the following formula:

CPI in 1973 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

44.4 - 53.853.8
×
100
=
-17%

## 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 8.73% per year between 1975 and 1973 (vs all-CPI inflation of 10.08%), for an inflation total of 18.22%.

When using the core inflation measurement, \$1 in 1975 is equivalent in buying power to \$1.18 in 1973, a difference of \$0.18. Recall that for All Items, the converted amount is \$0.83 with a difference of \$-0.17.

In 1975, core inflation was 3.49%.

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

• Margaret Thatcher becomes leader of the British Conservative Party, after defeating Edward Heath.
• Ethiopia abrogates its 3,000-year-old monarchy.
• Bill Gates and Paul Allen found Microsoft.
• The US signals the beginning of the end of its involvement Vietnam, after it begins to evacuate its citizens from Saigon.
• Gough Whitlam is removed by Governor General Sir John Kerr: the first time an elected Prime Minister had been deposed in 200 years (Australia).

## 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 1975 → 1973 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 13 Jun. 2021, https://www.officialdata.org/us/inflation/1975?amount=1&endYear=1973.

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.