US Inflation from 1929 to 1935
US inflation from 1929 to 1935 was -19.9%. $100 in 1929 had the same purchasing power as $80.12 in 1935 (avg. -3.63%/yr).
$100.00 in 1929 is worth
$80.12
in 1935
-19.9%
-3.63%/yr
How prices changed from 1929 to 1935
| Item | 1929 | 1935 | Change |
|---|---|---|---|
| Gallon of gas | $0.21 | $0.15 | −29% |
| Loaf of bread | $0.09 | $0.08 | −11% |
What Drove Inflation from 1929 to 1935
The 1930s were defined by the Great Depression, the most severe economic contraction in modern history. Prices fell sharply in the early years as banks collapsed, unemployment soared above 25%, and consumer demand evaporated. New Deal programs and monetary expansion eventually stabilized prices by mid-decade, but full recovery required the defense spending buildup ahead of World War II.
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 6 years, prices rose modestly — a total inflation rate of -19.9%. The annualized rate of -3.63% per year was well below the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 1929:
Ending in 1935: