US Inflation from 1920 to 1930
US inflation from 1920 to 1930 was -16.5%. $100 in 1920 had the same purchasing power as $83.50 in 1930 (avg. -1.79%/yr).
$100.00 in 1920 is worth
$83.50
in 1930
-16.5%
-1.79%/yr
How prices changed from 1920 to 1930
| Item | 1920 | 1930 | Change |
|---|---|---|---|
| Gallon of gas | $0.30 | $0.20 | −33% |
| Loaf of bread | $0.12 | $0.09 | −25% |
What Drove Inflation from 1920 to 1930
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 10 years, prices rose modestly — a total inflation rate of -16.5%. The annualized rate of -1.79% per year was well below the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 1920:
Ending in 1930: