US Inflation from 1965 to 1970
US inflation from 1965 to 1970 was +23.2%. $100 in 1965 had the same purchasing power as $123.17 in 1970 (avg. +4.26%/yr).
$100.00 in 1965 is worth
$123.17
in 1970
+23.2%
+4.26%/yr
How prices changed from 1965 to 1970
| Item | 1965 | 1970 | Change |
|---|---|---|---|
| Gallon of gas | $0.31 | $0.36 | +16% |
| Loaf of bread | $0.21 | $0.24 | +14% |
| New home (median) | $20,000 | $23,400 | +17% |
| Median household income | $6,882 | $9,867 | +43% |
| Movie ticket | $1.01 | $1.55 | +53% |
| Annual college tuition (public) | $243 | $358 | +47% |
What Drove Inflation from 1965 to 1970
The 1960s began with price stability but ended with rising inflation. Great Society social programs and Vietnam War spending pushed federal deficits higher without offsetting tax increases. The Federal Reserve accommodated this fiscal expansion, keeping interest rates low. By the end of the decade, inflation was running above 5% annually, setting the stage for the turbulent decade that followed.
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 5 years, prices rose modestly — a total inflation rate of +23.2%. The annualized rate of +4.26% per year was above the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 1965:
Ending in 1970: