$1 in 1785 is equivalent in purchasing power to about $0.98 in 1786.
The dollar had an average **deflation** rate of -2.06% per year since 1785, producing a cumulative price change of -2.06%.
Purchasing power *increased* by 2.06% in 1786 compared to 1785. On average, you would have to spend 2.06% *less* money in 1786 than in 1785 for the same item.
This is an example of **deflation**.

This means that prices in 1786 are 2.06% lower than average prices since 1785, according to the Bureau of Labor Statistics consumer price index.

The 1785 inflation rate was -4.90%. The inflation rate in 1786 was -2.06%. The 1786 inflation rate is lower compared to the average inflation rate of 1.44% per year between 1786 and 2021.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1786 was 9.50. It was 9.70 in the previous year, 1785. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1786 CPI is less than 1785 CPI, negative inflation (also known as deflation) has occurred.

Contents

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Average inflation rate | -2.06% |

Converted amount ($1 base) | $0.98 |

Price difference ($1 base) | $-0.02 |

CPI in 1785 | 9.700 |

CPI in 1786 | 9.500 |

Inflation in 1785 | -4.90% |

Inflation in 1786 | -2.06% |

$1 in 1785 | $0.98 in 1786 |

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1785 would be equivalent to £1.00 in 1786, an absolute change of £0.00 and a cumulative change of 0.00%.

Compare these numbers to the US's overall absolute change of $-0.02 and total percent change of -2.06%.

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 1785 and 1786.

Compare these values to the overall average of -2.06% per year:

Category | Avg Inflation (%) | Total Inflation (%) | $1 in 1785 → 1786 |
---|---|---|---|

Food and beverages | 0.00 | 0.00 | 1.00 |

Housing | 0.00 | 0.00 | 1.00 |

Apparel | 0.00 | 0.00 | 1.00 |

Transportation | 0.00 | 0.00 | 1.00 |

Medical care | 0.00 | 0.00 | 1.00 |

Recreation | 0.00 | 0.00 | 1.00 |

Education and communication | 0.00 | 0.00 | 1.00 |

Other goods and services | 0.00 | 0.00 | 1.00 |

For all these visualizations, it's important to note that not all categories may have been tracked since 1785. This table and charts use the earliest available data for each category.

Our calculations use the following inflation rate formula to calculate the change in value between 1785 and 1786:

CPI in 1786
CPI in 1785

×

1785 USD value

=

1786 USD value

Then plug in historical CPI values. The U.S. CPI was 9.7 in the year 1785 and 9.5 in 1786:

9.59.7

×

$1

=

$1 in 1785 has the same "purchasing power" or "buying power" as $0.98 in 1786.

To get the total inflation rate for the 1 years between 1785 and 1786, we use the following formula:

CPI in 1786 - CPI in 1785CPI in 1785

×

100

=

Plugging in the values to this equation, we get:

9.5 - 9.79.7

×

100

=

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

- The Times is published for the first time by John Walter of London
- James Hutton's theory of uniformitarianism is read in public at the Royal Society of Edinburgh.
- US currency named "dollar" and decimal coinage adopted by Congressional resolution

Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (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: “Inflation Rate in 1786 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Oct. 2021, https://www.officialdata.org/inflation-rate-in-1786.

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.

Average inflation rate | -2.06% |

Converted amount ($1 base) | $0.98 |

Price difference ($1 base) | $-0.02 |

CPI in 1785 | 9.700 |

CPI in 1786 | 9.500 |

Inflation in 1785 | -4.90% |

Inflation in 1786 | -2.06% |

$1 in 1785 | $0.98 in 1786 |