Inflation Conversion Chart

Are you tired of people saying things like, "I remember when you could buy a house for 100 dollars, and cars were 5 dollars?" Do you always want to say something like, "Yeah, but you worked for 2 dollars a month, and besides you have to adjust the price for inflation," but you never had the data to challenge them? Well, now you do. I have used the Consumer Price Index numbers from the US Bureau of Labor Statistics to create this conversion chart.

How does it work?

Say, for example, that your grandfather is spouting-off about how a Coke was 5 cents when he was growing up, and now look at what they cost. If he was a kid in 1940, look-up the conversion factor in the chart below, which is 15.252. Now, simply multiply 5 cents by this conversion factor, and the price in today's dollars would be 76.26 cents. Wow, look at that! That's $9.15 for a 12-pack (probably 6 oz. bottles, too). I can get a 12-pack of Coke (in 12 oz. cans) for $4.95 any day of the week, less on sale. Those 5-cent Cokes don't look too impressive now, do they?

You could do it the other way. Say you want to know what $20 today would have bought in 1940. Take 20 and divide by 15.252 and you get 1.311, so $20.00 in 2008 dollars equals $1.31 in 1940 dollars.

Somebody ran a TV ad in 2005 claiming that cable rates had doubled in the last nine years. Is that a lot? Let's see. Nine years earlier is 1996. Looking at the lower table, the CPI for 2005 is 195.3 and the CPI for 1996 is 156.9. Divide 195.3 by 156.9 and you get 1.245. If your cable bill was $20 in 1996, your 2005 bill, adjusted only for inflation, should have been: $20 x 1.245, or $24.90. So yes, they were significantly out-pacing the rate of inflation. If your bill did increase 100% over those nine years, it wasn't solely becasue of inflation.

If this is too confusing, you can use the Bureau of Labor Statistics' Inflation Calculator.

So, have fun, amaze your friends, annoy your neighbors, but remember this is only an exhibition, this is not a competition, please no wagering.


Year   Factor      Year   Factor      Year   Factor      Year   Factor

1913   21.568      1938   15.144      1963    6.978      1988    1.805
1914   21.353      1939   15.362      1964    6.888      1989    1.722
1915   21.141      1940   15.252      1965    6.779      1990    1.634
1916   19.590      1941   14.526      1966    6.590      1991    1.568
1917   16.682      1942   13.100      1967    6.393      1992    1.522
1918   14.141      1943   12.343      1968    6.136      1993    1.478
1919   12.343      1944   12.132      1969    5.818      1994    1.441
1920   10.676      1945   11.863      1970    5.503      1995    1.401
1921   11.929      1946   10.950      1971    5.272      1996    1.361
1922   12.710      1947    9.575      1972    5.108      1997    1.330
1923   12.487      1948    8.860      1973    4.809      1998    1.310
1924   12.487      1949    8.972      1974    4.331      1999    1.282
1925   12.202      1950    8.860      1975    3.969      2000    1.240
1926   12.064      1951    8.213      1976    3.753      2001    1.206
1927   12.272      1952    8.058      1977    3.524      2002    1.187
1928   12.487      1953    7.997      1978    3.275      2003    1.160
1929   12.487      1954    7.938      1979    2.941      2004    1.130
1930   12.786      1955    7.967      1980    2.591      2005    1.093
1931   14.048      1956    7.850      1981    2.349      2006    1.059
1932   15.586      1957    7.599      1982    2.213      2007    1.030
1933   16.425      1958    7.389      1983    2.144
1934   15.935      1959    7.338      1984    2.055
1935   15.586      1960    7.214      1985    1.984
1936   15.362      1961    7.141      1986    1.948
1937   14.828      1962    7.070      1987    1.880
Data current as of March, 2008

How I arrived at these numbers

The numbers I use are CPI-U (1982-1984=100), series CUUR0000SA0, and here's the page that I use to extract the data. I use the annual CPI for each year. This yields a chart like that below.
Year     CPI       Year     CPI       Year     CPI       Year     CPI

1913      9.9      1938     14.1      1963     30.6      1988    118.3
1914     10.0      1939     13.9      1964     31.0      1989    124.0
1915     10.1      1940     14.0      1965     31.5      1990    130.7
1916     10.9      1941     14.7      1966     32.4      1991    136.2
1917     12.8      1942     16.3      1967     33.4      1992    140.3
1918     15.1      1943     17.3      1968     34.8      1993    144.5
1919     17.3      1944     17.6      1969     36.7      1994    148.2
1920     20.0      1945     18.0      1970     38.8      1995    152.4
1921     17.9      1946     19.5      1971     40.5      1996    156.9
1922     16.8      1947     22.3      1972     41.8      1997    160.5
1923     17.1      1948     24.1      1973     44.4      1998    163.0
1924     17.1      1949     23.8      1974     49.3      1999    166.6
1925     17.5      1950     24.1      1975     53.8      2000    172.2
1926     17.7      1951     26.0      1976     56.9      2001    177.1
1927     17.4      1952     26.5      1977     60.6      2002    179.9
1928     17.1      1953     26.7      1978     65.2      2003    184.0
1929     17.1      1954     26.9      1979     72.6      2004    188.9
1930     16.7      1955     26.8      1980     82.4      2005    195.3
1931     15.2      1956     27.2      1981     90.9      2006    201.6
1932     13.7      1957     28.1      1982     96.5      2007    207.3
1933     13.0      1958     28.9      1983     99.6
1934     13.4      1959     29.1      1984    103.9
1935     13.7      1960     29.6      1985    107.6
1936     13.9      1961     29.9      1986    109.6
1937     14.4      1962     30.2      1987    113.6
Then I take the current CPI (for March, 2008 it's 213.528) and divide that number by all of the CPIs to get the conversion factors in the chart at the top of the page. That's all there is to it. I acknowledge that there may be some flaws in this methodology, but we're just trying to have fun, not get to the moon. More information can be had at The CPI Home Page.
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Written and copyright (c) 2008 by Eric Treankler (et@lospadrescounty.net)
Questions, comments, and suggestions welcome.
Last modified: 6 MAY 2008
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