Inflation in the USA - 2021 and table by year from 1961 to 2021

Inflation growth in the US in 2021

Many people today are trying to save their savings from inflation by converting them into dollars.
But savings in American currency are gradually depreciating. Experts point to an unusually high increase in inflation for the United States in 2021. At the end of February it rose to 1.7% per annum, in March it rose to 2.6%, and in April it was already 4.2%. This is the highest level since September 2008.

The core consumer price index, which excludes volatile goods such as energy and food, gained 3% year over year, a gain not seen since January 1996.

What caused the rise in consumer prices in America?

Experts name several reasons.

1Firstly, during the pandemic in the United States, the printing press was launched at full capacity, spending up to nine trillion dollars on anti-crisis measures. In March 2021, the US Congress approved President Joe Biden's proposed American Rescue Plan for another $1.9 trillion. Unsecured bills fueled inflation.

2Secondly, deferred consumer demand also increases the inflation risk. During the pandemic, American consumers changed their habits; they did not travel, did not go to restaurants, and so on. As a result, about $1.6 trillion has accumulated. With the easing of quarantine measures, they begin to spend this money.

How will I reduce inflation in the US?

The Federal Reserve (FRS) has at least two response measures in its arsenal, Vedomosti writes.

✓ The first is to reduce the asset repurchase program (the so-called quantitative easing, quantitative easing, QE) or even curtail it altogether.

✓ The second is to increase the refinancing rate.

How can this threaten Russia?

Perhaps some Russians today, looking at the rise in consumer prices in America, are gloating. Until recently, inflation in Russia was in double digits. We remember well what it is.

However, for Russia, as for many other developing countries, the Federal Reserve's (Fed) response to rising inflation could have very unpleasant consequences - from a depreciation of the ruble against the dollar to higher consumer prices.

Comparison with Russia

Schedule. Inflation Russia, USA:

When comparing the inflation rate of two countries, you should always take into account the difference in the exchange rates of national currencies. However, thanks to minimal increases in prices for goods and services, the US government can provide its population with a more stable life. That is, American prices are growing more slowly than Russian prices. This is evidenced by the statistics on the inflation rate of each country shown in the graph above.

The situation regarding bank deposits in the two countries is also similar. For example, in 2011, US banks provided their clients with deposits at 0.35 percent. Therefore, as in Russia, in the USA, at such an interest rate, you can only protect your savings from inflation; you won’t be able to earn much money.

To determine how much inflation will affect an individual, you always need to take into account his needs, and these may be biased towards the consumption of luxury goods or essential goods. Inflation will affect the first category of people less than the second.

Inflation in the USA by year from 1961 to 2021

The inflation rate for 2021 in the United States is 1.36%.
But there were periods when inflation in the United States was in double digits. For example, in 1918 it was 20.44% - this is the maximum level over the last two centuries. Peak values ​​were also observed in 1946 (18.13%), 1979 (13.29%), 1980 (12.52%), 1990 (6.11%).

There were also years of deflation. For example, in 1921 the value was negative -10.82%, and in 1932 - 10.27%.

Inflation table in the USA by year

2011 — 2020

2001 — 2010

1991 — 2000

1981 — 1990

1971 — 1980

1961 — 1970

.

Dollar inflation by month

The following is data on price level growth calculated by month:

At the beginning of the year, there is traditionally an increase in average wages over previous months, which increases inflation. In the euro area countries, the opposite trend is observed: a drop in indicators at the beginning of the year and a gradual increase towards the end of the period.

History of American Prices from 1776 to Today

Source: 247WALLST.COM

Since the signing of the Declaration of Independence in 1776, the cost of living in America has increased approximately fifteenfold. Of course, not all prices have risen equally.

Over 234 years, coffee has risen in price 15 times. This is similar to the depreciation of the dollar, as measured by the purchasing power of the dollar and the consumer price index.

Land values ​​have increased significantly in certain parts of the country - especially in regions that were once rural and are now part of large cities. Who could have known 150 years ago that land in New York's Central Park would be worth several thousand times more than it was in 1776? In turn, products like whale oil, once used for lighting homes, now have no official value at all. Powdered wigs have clearly lost value because they have gone out of fashion.

Inflation varies surprisingly from decade to decade, from product to product, from service to service. Portal 24/7 Wall St. decided to illustrate this by looking at the prices of some goods that were and, in some cases, are part of everyday life in America. We looked at the prices of common goods for every 25 years since 1776. Some of them cannot be tracked throughout the entire period. For example, Levi Jeans were not sold until the 1870s. Also, Americans today do not own horses, but many did in the late 18th and early 19th centuries. As such, the products and services reviewed by us have changed from time to time.

Many economists and Federal Reserve officials argue that there is no inflation. They worry that America could enter a period of widespread unemployment and falling prices, similar to the era of deflation that destroyed the Japanese economy almost 20 years ago. And these experts may be right. However, they will most likely not be right for long.

Low interest rates, high unemployment and a faltering housing market may keep a lid on the prices of many of the goods Americans buy and sell daily, but economies are recovering and periodic shortages of critical products like oil can turn periods of mild price increases into periods of hyperinflation. In 1980, rapid increases in the cost of oil and other commodities pushed inflation up 15%. Mortgage rates rose to 18%. This was partly due to the enormous rise in oil prices that began with two oil export crises in 1973 and 1979. Gasoline was such an important part of American consumer activity and industrial production that the cost of living and the cost of doing business changed almost overnight in the late 1970s.

In its analysis of the cost of living over 234 years, 24/7 Wall St. demonstrates that the cost of goods and services can rise rapidly over a period of several years, and then a once important product quickly becomes completely useless. This is the "car antenna" phenomenon. The automobile quickly replaced the horse and buggy just after the turn of the 20th century. On the other hand, the value of goods like land and gold can rise almost indefinitely. Because they are essentially finite assets, unlike oil, they provide ideal protection against GDP contraction and low levels for several years.

In our analysis, we used "Dollar Rate: 1600-1865" and "Dollar Rate: 1860-2004", which are among the most accurate sources of information about dollar movements and, by looking at historical commodity prices and wages, how they affect economy. We also consulted publications on a site dedicated to providing “the highest quality and most reliable information on important aggregate economic indicators.” Finally, we consulted the Commodity Exchange to verify historical commodity prices and also determine which commodity would best reflect inflation over time.”

Our description of each period provides a historical summary and a list of some of the most interesting prices. To complete the picture, we present coffee prices for each year throughout the period, as well as the approximate historical purchasing power of the dollar for that year.

1776

— A ton of iron cost $63.73 (Philadelphia, 1775) — Twenty gallons of orange peel cost 2 shillings 6 pence (Richmond County, Virginia, 1776)

- Chessboard with pieces cost 2 shillings 6 pence (Richmond County, Virginia, 1776)

— A double-barreled gun cost 3 pounds (Richmond County, Virginia, 1776)

— A pound of coffee cost 0.13 silver dollars (Boston, 1775)

— $1 in 1775 = $29 today

During the American Revolution, the primary currency of the United States was still British pounds. When war broke out, the colonies began printing enormous amounts of paper money (about $450 million) to cover expenses, causing horrific inflation. This, coupled with shortages associated with the British blockade, led to significant increases in the price of many goods.

1800

- Dictionary cost $0.50 (1797) - Encyclopedia in 12 volumes cost $2 (1802)

- The chest of drawers cost $2 (1802) - The cow cost $10 (Charles County, Maryland, 1804) - The cost of building the President's House for South Carolina College was $8,000 (1806)

— A pound of coffee cost $0.25

— $1 in 1800 = $17.60 today

At the beginning of the 19th century, the United States economy was still immature. The country's monetary base did not exceed $30 million, that is, there was less than $6.00 per citizen, and the entire volume of the economy was only $20 million greater than the amount of money of all the colonies 25 years earlier. The cost of many goods has increased due to poor infrastructure in the country. Shipping one ton of goods from Europe to America 3,000 miles cost $9.00. It cost the same to transport the same quantity of goods from the coast inland 30 miles.

1825

- Ten pounds of sugar cost $0.20 (1822) - One acre (4046.86 m2) of 400 acre land cost $2.00 (Sumter, SC, 1823) - Bushel (35.2 liters) of potatoes cost $0.12 (1829) - Porcelain service cost $8.00 (1828) - Cow cost $12.00 (1829)

— A pound of coffee cost $0.17

— One dollar in 1825 = $22.40 today

The hallmarks of the American economy in 1825 were innovation and expansion. The construction of irrigation systems and railways opened up access to the interior of the country, and as a result, consumer goods became available to many who lived away from industrial centers, and domestic trade increased. In addition, approximately 100,000 Europeans moved to the United States each year, many of them skilled artisans, which greatly stimulated the economy.

1850

- A bottle of port cost $0.11 (Greenville County, South Carolina, 1847) - A piano cost $195 in 1847 - A routine doctor's visit cost $2 (Florida, 1852) - A new house in Brooklyn, New York cost $2,500 ( 1853)

— A pound of coffee cost $0.80

— $1 in 1850 = $28.30 today

By 1850, the United States economy was growing extremely strongly, driven by the success of agriculture in the South and industry and commerce in the North. The country's population has increased approximately fivefold since the beginning of the century and, accordingly, labor productivity has increased significantly. Between 1840 and 1860, the country more than doubled its agricultural production. The mining and manufacturing industries have tripled during this time.

1875

— A neckerchief, “designed to replace all other methods of tying a cord under a collar,” cost $0.10 — A dozen pairs of Levi Strauss jeans cost $13.50 (1874) — A pair of shoes cost $0.98 (1875) - Costume cost $10.00 (1875) - Opera ticket to Le nozze di Figaro cost $1 (San Francisco, 1875)

— A pound of coffee cost $0.25

— $1 in 1875 = $20.20 today

After the Civil War, US manufacturing experienced an unprecedented boom. However, this growth was interrupted by the Panic of 1873, a major economic recession. In addition to this decline, the country experienced rapid economic recovery because from 1860 to 1890 the population more than doubled, from 31.5 to 76 million. Most jobs required a 60-hour work week and paid anywhere from $1.60 (firefighter in Massachusetts) to $4.64 per day (glassblower in New Jersey).

1900

- Tooth powder cost $0.25 (1896) - 40-week boarding at Clemston College cost $59 (1896) - House on Flatbush Avenue in Brooklyn, New York, cost $7,000 to $12,000 (1901) ) - Oldsmobile cost $650 (1904)

— A pound of coffee costs $0.15

— $1 in 1900 = $26.40 today

The early 20th century is known as the Progressive Era. The lower classes, fed up with the abuses of the trusts and railway companies, pushed for legislation to combat corruption and poor working conditions. During this period, industrial growth continued in the United States, and from 1900 to 1920, the number of nonfarm jobs increased from 800,000 to two million. In 1900, Kodak released its famous Brownie camera. It cost $1.

1925

— A year's tuition at Cornell University, including living expenses, cost $1,400 (1927) — A Harley-Davidson motorcycle cost $235 (1927) — A camera cost $80 (1928) — A Chrysler Imperial Sedan cost $2,995 (1928) .)

— A pound of coffee cost $0.47

— $1 in 1925 = $12.20 today

In 1925, America found itself in the midst of the Roaring Twenties, characterized by rapid economic growth and consumerism. In 1925, more than 40 million Americans went to the movies every week, there were 20 million cars on the road, and having a radio was to most Americans what having a television was today. That year, women became the target of an advertising campaign for Chesterfield cigarettes, and Hormel released the first canned meat that would later be called “Spam.”

1950

- A game of Monopoly cost $4 (1950) - A bottle of aspirin cost $0.54 - A Chevy Corvette cost about $3,000 - A one-way plane ticket from New York to California cost $88.

— A pound of coffee cost $0.79

— $1 in 1950 = $8.91 today

In the 1950s, the American industrial economy was going through a period of change after World War II. Following the return to civilian life of millions of American soldiers receiving discharge benefits and the introduction of a new 40-hour workweek as a result of Roosevelt's New Deal, the economy was characterized by a strong middle class as well as mass migration to the suburbs. In 1950, there was one car for every 3.7 Americans and 5 million households owned televisions, but only 45 million still had radios. This year, Coke held 69% of the cola market.

1975

- An Apple computer cost $1,300 (1977) - A six-pack of beer cost $1.49 (1978) - A microwave cost $168 (1978) - A movie ticket cost $1 (Chicago, 1978)

— A pound of coffee cost $1.40

— $1 in 1975 = $3.98 today

In the mid-1970s, the United States was experiencing one of the worst economic crises since the Great Depression. Oil prices have skyrocketed, with the cost of regular gasoline topping $1.00 per gallon for the first time. In 1975, 120,000 Americans filed for bankruptcy and unemployment reached 9.2%. That same year, the first McDonald's drive-in restaurant opened.

year 2000

- A 12-pack of Bud Light cost $8.99 (2003) - A 42-inch Samsung TV cost $999 (2004) - A movie ticket in Chicago cost $7.50 (2004) - Cost of one year of college at St. . John's College was $30,570 (2004)

— A pound of coffee cost $3.54 (2000)

— $1 in 2000 = $1.25 today

As the United States entered the 21st century, the economy boomed due to the “dot-com bubble.” Unfortunately, conditions changed for the worse after the bubble burst in 2001. However, many other features are characteristic of this period, for example, the fact that 60% of American households had a personal computer. The 2000s also saw the birth of the modern green movement, with Honda releasing its first hybrid vehicle.

Inflation tables

Inflation rate table by month on an annualized basis

The annualized inflation rate presented in the table below is calculated as the sum of the 12-month inflation rates including the selected month. This method allows you to assess the dynamics of changes in the inflation rate as a whole, smoothing out seasonal deviations.

Inflation rate table by month

The table below shows the inflation rate for each month separately, from the first to the last day of the month.

The monthly inflation rate is added to the annual one non-algebraically. Inflation calculators allow you to calculate the inflation rate for an arbitrary period.