US Inflation from 1913 to 1935
US inflation from 1913 to 1935 was +38.4%. $100 in 1913 had the same purchasing power as $138.38 in 1935 (avg. +1.49%/yr).
$100.00 in 1913 is worth
$138.38
in 1935
+38.4%
+1.49%/yr
How prices changed from 1913 to 1935
| Item | 1913 | 1935 | Change |
|---|---|---|---|
| Gallon of gas | $0.12 | $0.15 | +25% |
| Loaf of bread | $0.06 | $0.08 | +43% |
What Drove Inflation from 1913 to 1935
World War I & Postwar: The Federal Reserve's founding in 1913 and the onset of World War I in 1914 transformed the US economy. War production drove full employment and surging demand, while imports collapsed. Consumer prices nearly doubled between 1914 and 1920 as government borrowing and money creation fueled wartime spending. A sharp but brief postwar boom preceded a painful deflationary recession in 1920–21.
Roaring Twenties: After the 1920–21 deflation shock, the US economy roared back. Mass production techniques, especially in the auto industry, drove productivity gains and kept goods prices surprisingly stable even as wages rose. Consumer credit expanded rapidly, fueling purchases of cars, appliances, and homes. Financial speculation ran rampant, and the stock market tripled before the crash of October 1929 exposed the era's fragile foundations.
Great Depression: The stock market crash of 1929 triggered bank panics, credit contraction, and the worst deflation in modern American history. Consumer prices fell nearly 25% between 1929 and 1933 as unemployment exceeded 25% and output collapsed. Roosevelt's New Deal programs stabilized prices and boosted demand, but a premature fiscal tightening in 1937–38 caused a painful recession-within-depression. Full recovery awaited wartime mobilization.
Understanding the Numbers
Over these 22 years, prices rose significantly — a total inflation rate of +38.4%. The annualized rate of +1.49% per year was well below the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 1913:
Ending in 1935: