Inflation
Conversion Factors for Dollars 1774 to Estimated 2018
by Robert Sahr
Consumer Price Index (CPI) conversion factors to determine the value of
dollars of 1774 to estimated 2018 in dollars of 2008 (estimated), 2007, 2006,
2005, 2004, 2003, 2002, 2001, 2000, 1999, 1998, 1997, 1996, 1995, CPI
(1982-84), and two special CPI measures, CPI-U-X1 (starting 1950), and CPI-U-RS
(starting 1947).
To ease understanding of the value of dollar figures over time, the
materials on this page “re-base” the official CPI from its current 1982-84
average base (= 1.000) to dollars of more recent years (for example, 2007 =
1.000).
Updated May 7, 2008. All inflation conversion factor tables (Excel
and pdf) were loaded May 7, 2008, using final CPI for 2007. Projections for years 2008 through estimated
2018 use estimates from the Office of Management and Budget and the
Congressional Budget Office (OMB projected only through 2013).
(Changes
in the Oregon State University
I
will revise and post graphs as they become available. Revised graphs will be
labeled “revised 2008.”
Beginning
with this revision I have used a new
set of underlying price-level data to produce inflation
conversion factors for years prior to 1913.
Conversion factors for years before 1913 are re-based
from data from the Historical Statistics of
the United States Millennial Edition (Cambridge University
The average CPI for 2007, 2.07342 (alternately expressed as
207.342), was used to produce conversion factors to dollars of 2007.
All inflation conversion factors use year-to-year inflation, not December-to-December inflation. Final 2007 price level data are from Table 1A
in the Bureau of Labor Statistics publication Consumer
Price Index: December 2007,
available from the BLS web site (http://stats.bls.gov/cpi/).
Inflation assumptions: Inflation conversion factors for 2008 and
later years assume 2.8% in 2008, 2.2% in 2009, 2.25% each year 2010 to 2013,
and 2.2% each year 2014 to 2018.
Estimates 2008-2013 are the average of inflation estimates by the Office
of Management and Budget (OMB) and the Congressional Budget Office (CBO) for
each year as of early 2008; 2014-2018 are from only the CBO because the OMB did
not project past 2013 in its 2009 Budget proposals. The OMB and CBO will provide revised
inflation estimates by February 2009.
In
contrast to some earlier years, inflation in 2007 differed significantly from
early-2007 estimates. The estimated conversion factors for 2007
produced in February of that year assumed average 2007 CPI of 2.056, 2.0 percent
inflation, using the average of OMB and CBO estimates. The final CPI of 2.07342 shows actual 2007
inflation of 2.85 percent. As shown
here, the BLS began in 2008 stating the CPI to more
significant digits than in earlier years.
Inflation
in 2006 was almost exactly what had been estimated early 2006 using the average
of OMB and CBO early-2006 estimates. The
2006 CPI estimated February 2006 was 201.5, which would result in 2006
inflation of 3.17 percent. The actual
(final) CPI was 201.6, resulting in actual inflation of 3.23 percent. Both of these round to 3.2 percent inflation,
which is the degree of rounding used to produce these conversion factors. As a result, the final conversion factors
differed insignificantly from those estimated early in 2006. This contrasts with early 2005 estimates of
inflation for that year to be 2.4%, much lower than the actual 3.4%. The same occurred in 2004. The average of OMB and CBO estimates of 2004
inflation early in 2004 was 1.5%. Actual
2004 inflation was 2.7%.
Numerous graphs that use these conversion factors
are available in the GRAPHS section. Most graphs show the year of most recent
revision, either with such labels as “[revised 2005]”
or by the inclusion of the year in the link name. All graphs will be revised beginning summer
2008.
All
the graphs in each set of graphs have been assembled into pdf files to
facilitate saving and printing. Each is
located at the end of its respective set.
Instructions about how to produce conversion
factors for any base year are available here. This might be useful for anyone who needs to
produce dollars for a base year not shown here, for example, dollars of 1928
(that is, 1928 = 1.000). The calculation
process to produce conversion factors using the year 1928 as the base is shown here
.
Conversion factors for the years 1913 and
later use CPI-U data from the US Bureau of Labor Statistics. Prior to the 2008 revision, conversion
factors used price-level data from John J. McCusker and colleagues for the period 1665 to 1912. McCusker's offprint How
Much Is That In Real Money?,
revised 2001 (ISBN 1-929545-01-1) is available from the American Antiquarian
Society for $15 plus shipping and handling through their web site.
A comparison of price level and inflation
estimates prior to 1913 using the Historical Statistics and McCusker
price series is available here
.
A
journal article using these conversion factors is available here.
Adobe Acrobat Reader is needed to
read items in pdf format.
An
interesting discussion that denominates prices of selected items over time in
terms of number of hours, days, or similar worked to purchase is available from
the Federal Reserve Bank of
A
brief bibliography of books and other materials about cost of living and
related concerns during various periods of American history is available here,
in pdf format.
Note
to users of Firefox and other non-Internet-Explorer web browsers: In the forthcoming revision I will attempt to make all graphs accessible to
users of non-Internet-Explorer browsers.
In the interim, Firefox users who have difficulty viewing items on this
page can open pages using the “view this item in IE.” Similar procedures might be available for
other browsers.
The
Excel and pdf files on this page should be accessible to users of all web
browsers.
Download Conversion Factors. All have been revised
to reflect final 2007 CPI data and OMB-CBO estimates for years beginning 2008.
Excel
file with column-format conversion factors 1774 to estimated 2018: CPI (1982-84 Dollars), 1995,
1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007 (final),
estimated 2008, CPI-U-X1 (2007 dollars), and CPI-U-RS (an experimental measure,
using 2007 dollars, and updated CPI-U-RS data from the Bureau of Labor
Statistics). This file contains
conversion factors for each of those years and also
inflation rates using CPI-U for years starting 1774, CPI-U-RS for years
starting 1947, and CPI-U-X1 for years starting 1950.
For ease of printing, the Excel file also is
available in pdf format: Conversion
factors 1774 to estimated 2018 (pdf format).
Data prior to 1913 are estimates; data for 1913 to the
present involve data from the Bureau of Labor Statistics, though the specific
methods of data collection have changed during that period. Use special caution
concerning data prior to 1913.
I strongly recommended that all dollar figures using these
conversion factors for years prior to 1913 be rounded,
e.g., $14,663 becomes $14,700, and preferably—especially for early years—to
$15,000. Similarly, round dollars
derived for years 1913 to the present to, for example, $14,660.
The Economic History Net site also contains
other sets of data, available here.
Stating
dollar figure conversions in dollars and cents nearly always implies more
precision than the data allow.
Conversion Factor Tables (all have been revised to reflect final 2007 CPI data and early 2008
inflation estimates from the OMB and CBO)
Conversion
factor tables are available as Portable Document Format (pdf) files and also in Excel format, for direct use in conversion. The tables of conversion factors below cover
the period 1774 to estimated 2018.
The
2007 conversion factors are based on final 2007
CPI. Recommendation: Use 2007
final conversion factors unless 2008 data are essential. As noted above, final conversion factors in
recent years have differed significantly from estimated conversion factors
early in the year.
Conversion
Factors in final 2007 Dollars for
1774 to estimated 2018
Conversion
Factors in 2007 Dollars, Using CPI-U-X1 for 1950 to estimated 2018
(CPI-U-X1 applies the post-1982 CPI to the period 1950 to 1982),
with comparisons of inflation 1950 to 1982 using both CPI-U and CPI-U-X1
measures
Conversion
Factors in 2007 Dollars, Using CPI-U-RS for 1947 to 2007 (CPI-U-RS is
“Research Series,” with 1977 = 100, extended to 1947 by the Census Bureau),
re-based here to 2007 = 1.000. Note that
unlike other CPI measures, the CPI-U-RS data can be revised
each year even for earlier years rather than just for the most recent
year. For that reason, no estimated
CPI-U-RS conversion factors are supplied for any year
after 2007.
Conversion
Factors in 2007 Dollars, Using both
CPI-U-X1 and CPI-U-RS for 1947 to estimated 2018 (combines the
previous two tables, but omits inflation comparison 1950-1982; also the
CPI-U-RS conversion factors are included only through 2007, for reasons stated
immediately above)
Conversion
Factors in estimated 2008 Dollars
for 1774 to estimated 2018
Conversion
Factors in 2006 Dollars for 1774 to estimated 2018
Conversion
Factors in 2005 Dollars for 1774 to estimated 2018
Conversion
factors for 2005 were corrected May 21, 2008
Conversion
Factors in 2004 Dollars for 1774 to estimated 2018
Conversion
Factors in 2003 Dollars for 1774 to estimated 2018
Conversion
Factors in 2002 Dollars for 1774 to estimated 2018
Conversion
Factors in 2001 Dollars for 1774 to estimated 2018
Conversion
Factors in 2000 Dollars for 1774 to estimated 2018
Conversion
Factors in 1999 Dollars for 1774 to estimated 2018
Conversion
Factors in 1998 Dollars for 1774 to estimated 2018
Conversion
Factors in 1997 Dollars for 1774 to estimated 2018
Conversion
Factors in 1996 Dollars for 1774 to estimated 2018
Conversion
Factors in 1995 Dollars for 1774 to estimated 2018
Conversion
Factors in CPI [1982-84] Dollars for 1774 to estimated 2018
Original
data for the CPI-U-RS are available from the Bureau of Labor Statistics
Reminder: Conversion factors for years prior to 1913 should be considered estimates. In addition, CPI measures
have changed over time, so data for the entire period are not precisely
comparable. Note that conversion factors that apply the post-1982 CPI to the
period 1950 to 1982 are available above as the CPI-U-X1, in 2007 dollars.
A
complete table of monthly CPI-U data with semi-annual and annual changes from
1913 to the present can be created at the Bureau of
Labor Statistics web site
graphs (except as specifically noted, these have NOT yet
been revised to reflect final 2007 CPI data. Those that
have been revised are labeled “[revised 2008]”)
Except
as noted, the graphs print best in “landscape” (horizontal, wide) print format.
Caution: Users of Firefox and other non-Internet
Explorer web browsers might have to use the “open link target in IE” option or
equivalent for some of the charts. I
will work to correct this difficulty in the next revision. The “summary pdf” file that contains all
subsection charts, located at the end of each sub-section, should operate
properly for all browers.
Charts
on the following topics are presented below and are
available either by scrolling down or by selecting the appropriate link:
Price levels and the US economy [nearly
all have been revised to reflect final 2005 CPI]
Millionaires Then and Now
Pay of Presidents and Members of Congress
[revised 2005 to reflect final 2004 data]
Presidential Election Costs 1860 to 2000
National
Government Budget: Outlays (Spending),
Revenue, Deficits or Surpluses, and National Debt
Selected Commodity Prices (gasoline and
gold) [gasoline revised June 2008, using June 2008
price data and estimated 2008 dollar conversion factors]
Movies
Budget Details
Price
Levels and the US
Price
levels 1665 to 2005, with 2005 = 100
Price
levels 1665 to 2005, with 2005 = 100 (logarithmic scale to show rate of change)
Price
levels 1665 to 1914, with 2005 = 100
Price
levels 1915 to estimated 2014with 2003 = 100
Yearly
price changes (inflation and deflation) 1665 to 1914 (yearly change, in
percent)
US
gross domestic product (size of economy) 1789 to 2005, in current and constant
(2005) dollars
Regarding the size of the
US economy, see also Economic History Net
Summary pdf file with all charts in this price level and
economy section
Millionaires
Then and Now
Dollars
Needed Each Year 1850 to 2003 to Equal in Value $1 Million in Dollars of the
Year 2002
Value
in Dollars of the Year 2002 of $1 Million Each Year 1850 to 2003
Net
Worth of Selected Wealthy Americans 1831 to 1996 in Inflation-adjusted (2002)
Dollars
Summary
pdf file with all charts in this millionaire section
Pay
of Presidents and Members of Congress
Presidential
Pay 1789 to 2005, in Current and Constant (2004) Dollars
Average Pay of Each President George Washington to
George W. Bush, in Current and Constant (2004) Dollars [Note: prints best in portrait format]
Ranked
Average Pay of Each President George Washington to George W. Bush, in Constant
(2004) Dollars [Note: prints best in portrait format]
Pay
of Members of Congress 1789 to 2005, in Current and Constant (2004) Dollars
Ratio
of the Pay of Members of Congress to Median Family Income, 1947 to 2003
Presidential and Vice
Presidential Salaries 1789 to the present, from Congressional Quarterly’s Guide to the Presidency, are available here
Summary
pdf file with all charts in this pay of presidents and members of Congress
section
Selected
Government-Related Items
Stamp Prices 1863 to 2003, in Current and Constant Cents
Minimum Wage 1938 to 2003, in Current and Constant (2002)
Dollars
Mean and Median Family Income 1947 to 2001, in Current and
Constant (2002) Dollars
Inflation-adjusted Mean and Median Family Income 1948 to
2000, actual and extrapolated as if 1947-1972 trends had continued to 2000, in
Constant (2000) Dollars (Census Bureau Data)
Summary pdf file with all charts in this selected
government-related items section
Presidential
Election Costs in Current and Constant (2002) dollars, 1860 to 2000 and Value
of 1974 Contribution Limits
Inflation-adjusted
Value of 1974 Campaign Contribution Limits Each Year 1975 to 2003
National
Government Budget: Outlays (Spending),
Revenue, Deficits or Surpluses, and National Debt
Note that the inflation conversion factors are
based on calendar year rather than national government budget year (fiscal
year, often abbreviated FY). Because this applies to all years, no
distortions should result from the minor divergence. The national government budget year begins
October 1 and is named after the calendar year in
which it ends. Until 1976
the national government budget year began July 1. (The period July 1 to
September 30, 1976 is called the “transitional quarter,” generally abbreviated TQ.)
Yearly
Inflation-adjusted Change in Discretionary Outlays, 1962 to estimated 2004, in
Percent
Composition
of Mandatory Spending, by Percent, 1964 to estimated 2008, in Percent
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