US Inflation from 1948 to 1970
US inflation from 1948 to 1970 was +61.0%. $100 in 1948 had the same purchasing power as $161.00 in 1970 (avg. +2.19%/yr).
$100.00 in 1948 is worth
$161.00
in 1970
+61.0%
+2.19%/yr
How prices changed from 1948 to 1970
| Item | 1948 | 1970 | Change |
|---|---|---|---|
| Gallon of gas | $0.26 | $0.36 | +38% |
| Loaf of bread | $0.14 | $0.24 | +71% |
| Movie ticket | $0.44 | $1.55 | +252% |
| Annual college tuition (public) | $110 | $358 | +225% |
What Drove Inflation from 1948 to 1970
Postwar Boom: The end of wartime controls unleashed a burst of inflation in 1946–48 as pent-up consumer demand met supply shortages. After that adjustment, the postwar boom settled into a long era of moderate inflation and strong real growth. The GI Bill, suburban expansion, a baby boom, and rising consumer spending drove prosperity. Inflation averaged around 2% per year through most of the 1950s and early 1960s.
Great Society & Vietnam: President Johnson's Great Society programs and escalating Vietnam War spending drove federal deficits higher without compensating tax increases. The Federal Reserve, under political pressure to keep rates low, accommodated this fiscal expansion. Inflation, which had been below 2% in the early 1960s, climbed steadily past 5% by 1969. Nixon imposed wage and price controls in 1971, temporarily suppressing inflation while setting the stage for a more severe outbreak.
Understanding the Numbers
Over these 22 years, prices rose significantly — a total inflation rate of +61.0%. The annualized rate of +2.19% per year was below the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 1948:
Ending in 1970: