# \$1,345 in 1980 → \$4,210.81 in 2020

## Inflation Calculator

\$

### U.S. Inflation Rate, \$1,345 from 1980 to 2020

According to the Bureau of Labor Statistics consumer price index, today's prices in 2020 are 213.07% higher than average prices since 1980. The U.S. dollar experienced an average inflation rate of 2.89% per year during this period, meaning the real value of a dollar decreased.

In other words, \$1,345 in 1980 is equivalent in purchasing power to about \$4,210.81 in 2020, a difference of \$2,865.81 over 40 years.

The 1980 inflation rate was 13.50%. The current inflation rate (2019 to 2020) is now 2.49%1. If this number holds, \$1,345 today will be equivalent in buying power to \$1,378.44 next year. The current inflation rate page gives more detail on the latest official inflation rates.

 Cumulative price change 213.07% Average inflation rate 2.89% Converted amount (\$1,345 base) \$4,210.81 Price difference (\$1,345 base) \$2,865.81 CPI in 1980 82.400 CPI in 2020 257.971 Inflation in 1980 13.50% Inflation in 2020 2.49%

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

### Buying power of \$1,345 in 1980

This chart shows a calculation of buying power equivalence for \$1,345 in 1980 (price index tracking began in 1635).

For example, if you started with \$1,345, you would need to end with \$4,210.81 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1,345 is equivalent to \$4,210.81 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 1980 dollars, the chart below shows how \$1,345 buys less over the past 40 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:

Year Dollar Value Inflation Rate
1980 \$1,345.00 13.50%
1981 \$1,483.74 10.32%
1982 \$1,575.15 6.16%
1983 \$1,625.75 3.21%
1984 \$1,695.94 4.32%
1985 \$1,756.33 3.56%
1986 \$1,788.98 1.86%
1987 \$1,854.27 3.65%
1988 \$1,930.99 4.14%
1989 \$2,024.03 4.82%
1990 \$2,133.39 5.40%
1991 \$2,223.17 4.21%
1992 \$2,290.09 3.01%
1993 \$2,358.65 2.99%
1994 \$2,419.04 2.56%
1995 \$2,487.60 2.83%
1996 \$2,561.05 2.95%
1997 \$2,619.81 2.29%
1998 \$2,660.62 1.56%
1999 \$2,719.38 2.21%
2000 \$2,810.79 3.36%
2001 \$2,890.77 2.85%
2002 \$2,936.47 1.58%
2003 \$3,003.40 2.28%
2004 \$3,083.38 2.66%
2005 \$3,187.85 3.39%
2006 \$3,290.68 3.23%
2007 \$3,384.41 2.85%
2008 \$3,514.35 3.84%
2009 \$3,501.85 -0.36%
2010 \$3,559.29 1.64%
2011 \$3,671.64 3.16%
2012 \$3,747.62 2.07%
2013 \$3,802.51 1.46%
2014 \$3,864.20 1.62%
2015 \$3,868.78 0.12%
2016 \$3,917.59 1.26%
2017 \$4,001.05 2.13%
2018 \$4,100.78 2.49%
2019 \$4,173.05 1.76%
2020 \$4,210.81 0.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 34 more rows

### Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1980 to 2020 (figures shown are purchasing power equivalents of \$1,345):

San Francisco, California experienced the highest rate of inflation during the 40 years between 1980 and 2020 (3.40%).

Detroit, Michigan experienced the lowest rate of inflation during the 40 years between 1980 and 2020 (2.63%).

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 £1,345.00 in 1980 would be equivalent to £5,805.60 in 2020, an absolute change of £4,460.60 and a cumulative change of 331.64%.

In Canada, CA\$1,345.00 in 1980 would be equivalent to CA\$3,970.95 in 2020, an absolute change of CA\$2,625.95 and a cumulative change of 195.24%.

Compare these numbers to the US's overall absolute change of \$2,865.81 and total percent change of 213.07%.

### Inflation by Spending Category

CPI is the weighted combination of many categories of spending that are tracked by the government. This chart shows the average rate of inflation for select CPI categories between 1980 and 2020.

Compare these values to the overall average of 2.89% per year:

Category Avg Inflation (%) Total Inflation (%) \$1,345 in 1980 → 2020
Food and beverages 2.79 200.09 4,036.16
Housing 3.05 232.90 4,477.56
Apparel 0.71 32.90 1,787.44
Transportation 2.32 150.67 3,371.46
Medical care 4.92 583.40 9,191.68
Recreation 1.10 55.07 2,085.73
Education and communication 1.81 105.29 2,761.12
Other goods and services 4.62 508.58 8,185.36

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 1980. This table and charts use the earliest available data for each category.

### How to Calculate Inflation Rate for \$1,345 since 1980

This inflation calculator uses the following inflation rate formula:

CPI in 2020CPI in 1980
×
1980 USD value
=
2020 USD value

Then plug in historical CPI values. The U.S. CPI was 82.4 in the year 1980 and 257.971 in 2020:

257.97182.4
×
\$1,345
=
\$4,210.81

\$1,345 in 1980 has the same "purchasing power" or "buying power" as \$4,210.81 in 2020.

To get the total inflation rate for the 40 years between 1980 and 2020, we use the following formula:

CPI in 2020 - CPI in 1980CPI in 1980
×
100
=
Cumulative inflation rate (40 years)

Plugging in the values to this equation, we get:

257.971 - 82.482.4
×
100
=
213%

### 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 3.02% per year between 1980 and 2020 (vs all-CPI inflation of 2.89%), for an inflation total of 229.28%.

When using the core inflation measurement, \$1,345 in 1980 is equivalent in buying power to \$4,428.76 in 2020, a difference of \$3,083.76. Recall that for All Items, the converted amount is \$4,210.81 with a difference of \$2,865.81.

In 1980, core inflation was 12.42%.

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

• Princess Victoria is crowned Princess of Sweden.
• Iranian protesters storm the Russian embassy in Iran.
• Abdou Diouf is elected president of Senegal after being Prime Minister for ten years.
• Cable News Network (CNN) is transmitted for the first time.
• Saddam Hussein, President of Iraq, declares a holy war on Iran.

### 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: “\$1,345 in 1980 → 2020 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 25 Feb. 2020, https://www.officialdata.org/us/inflation/1980?amount=1345&endYear=2020.