US Inflation from 1982 to 1990
US inflation from 1982 to 1990 was +35.4%. $100 in 1982 had the same purchasing power as $135.44 in 1990 (avg. +3.86%/yr).
$100.00 in 1982 is worth
$135.44
in 1990
+35.4%
+3.86%/yr
How prices changed from 1982 to 1990
| Item | 1982 | 1990 | Change |
|---|---|---|---|
| Gallon of gas | $1.22 | $1.16 | −5% |
| Loaf of bread | $0.57 | $0.70 | +23% |
| New home (median) | $69,300 | $122,900 | +77% |
| Median household income | $23,433 | $35,353 | +51% |
| Movie ticket | $2.94 | $4.23 | +44% |
| Annual college tuition (public) | $1,031 | $1,908 | +85% |
What Drove Inflation from 1982 to 1990
Disinflation: Volcker's medicine worked, but at a steep price: the 1981–82 recession was the deepest since the Depression, with unemployment exceeding 10%. Inflation fell rapidly from above 13% to below 4% by 1983. The subsequent expansion was long and vigorous, supported by falling oil prices, deregulation, and tax cuts. The Federal Reserve established credibility as an inflation fighter, anchoring expectations and keeping prices relatively stable through the rest of the decade.
Moderate Growth: A mild recession in 1990–91 gave way to the longest US economic expansion on record, running through March 2001. Globalization, technology productivity gains, and Federal Reserve credibility kept inflation low and stable. The 2001 dot-com bust and 9/11 attacks caused a brief, shallow recession. The subsequent expansion was driven by housing and consumer credit, with inflation remaining tame as Chinese goods imports suppressed goods prices globally.
Understanding the Numbers
Over these 8 years, prices rose significantly — a total inflation rate of +35.4%. The annualized rate of +3.86% per year was roughly in line with the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 1982:
Ending in 1990: