$1 in 1975 is worth $0.92 in 1974

Value of $1 from 1975 to 1974

$1 in 1975 is equivalent in purchasing power to about $0.92 in 1974. The dollar had an average inflation rate of 9.13% per year between 1974 and 1975, producing a cumulative price increase of -8.36%.

This means that prices in 1974 are 8.36% lower than average prices since 1975, according to the Bureau of Labor Statistics consumer price index.

The inflation rate in 1974 was 11.04%. The inflation rate in 1975 was 9.13%. The 1975 inflation rate is higher compared to the average inflation rate of 3.71% per year between 1975 and 2022.


Inflation from 1975 to 1974
Average inflation rate9.13%
Converted amount ($1 base)$0.92
Price difference ($1 base)$-0.08
CPI in 197553.800
CPI in 197449.300
Inflation in 197411.04%
Inflation in 19759.13%
$1 in 1975$0.92 in 1974

Recent USD inflation
Annual Rate, the Bureau of Labor Statistics CPI
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Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1975 to 1974 (figures shown are purchasing power equivalents of $1):

Houston, Texas experienced the highest rate of inflation during the 1 years between 1974 and 1975 (12.18%).

Detroit, Michigan experienced the lowest rate of inflation during the 1 years between 1974 and 1975 (7.45%).

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 £0.80 in 1974, an absolute change of £-0.20 and a cumulative change of -19.51%.

In Canada, CA$1.00 in 1975 would be equivalent to CA$0.90 in 1974, an absolute change of CA$-0.10 and a cumulative change of -9.64%.

Compare these numbers to the US's overall absolute change of $-0.08 and total percent change of -8.36%.


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 1974.

Compare these values to the overall average of 9.13% per year:

CategoryAvg Inflation (%)Total Inflation (%)$1 in 1974 → 1975
Food and beverages8.448.441.08
Housing10.5510.551.11
Apparel4.454.451.04
Transportation9.399.391.09
Medical care12.0612.061.12
Recreation0.000.001.00
Education and communication0.000.001.00
Other goods and services8.358.351.08

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, 1974 to 1975

Our calculations use the following inflation rate formula to calculate the change in value between 1974 and 1975:

CPI in 1974 CPI in 1975
×
1975 USD value
=
1974 USD value

Then plug in historical CPI values. The U.S. CPI was 53.8 in the year 1975 and 49.3 in 1974:

49.353.8
×
$1
=
$0.92

$1 in 1975 has the same "purchasing power" or "buying power" as $0.92 in 1974.

To get the total inflation rate for the 1 years between 1974 and 1975, we use the following formula:

CPI in 1974 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

49.3 - 53.853.8
×
100
=
-8%

Alternate Measurements of Inflation

There are multiple ways to measure inflation. Published rates of inflation will vary depending on methodology. The Consumer Price Index, used above, is the most common standard used globally.

Alternative measurements are sometimes used based on context and economic/political circumstances. Below are a few examples of alternative measurements.

Personal Consumption Expenditures (PCE) Inflation

The PCE Price Index is the U.S. Federal Reserve's preferred measure of inflation, compiled by the Bureau of Economic Analysis. It measures the change in prices of goods and services purchased by consumers.

The PCE Price Index changed by 8.34% per year on average between 1975 and 1974. The total PCE inflation between these dates was 8.34%. In 1975, PCE inflation was 10.41%.

This means that the PCE Index equates $1 in 1975 with $1.08 in 1974, a difference of $0.08. Compare this to the standard CPI measurement, which equates $1 with $0.92. The PCE measured 16.70% inflation compared to standard CPI.

For more information on the difference between PCE and CPI, see this analysis provided by the Bureau of Labor Statistics.

Core Inflation

Also of note is the Core CPI, which uses the standard CPI but omits the more volatile categories of food and energy.

Core inflation averaged 9.21% per year between 1975 and 1974 (vs all-CPI inflation of 9.13%), for an inflation total of 9.21%. In 1975, core inflation was 8.25%.

When using the core inflation measurement, $1 in 1975 is equivalent in buying power to $1.09 in 1974, a difference of $0.09. Recall that the converted amount is $0.92 when all items including food and energy are measured.


Data source & citation

Raw data for these calculations comes from the Bureau of Labor Statistics' (CPI), established in 1913. Inflation data from 1634 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.

You may use the following MLA citation for this page: “$1 in 1975 → 1974 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 6 Dec. 2022, https://www.officialdata.org/us/inflation/1975?amount=1&endYear=1974.

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.

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Inflation from 1975 to 1974
Average inflation rate9.13%
Converted amount ($1 base)$0.92
Price difference ($1 base)$-0.08
CPI in 197553.800
CPI in 197449.300
Inflation in 197411.04%
Inflation in 19759.13%
$1 in 1975$0.92 in 1974