$1 in 1973 is equivalent in purchasing power to about $1.11 in 1974. The dollar had an average inflation rate of 11.04% per year between 1973 and 1974, producing a cumulative price increase of 11.04%. Purchasing power decreased by 11.04% in 1974 compared to 1973. On average, you would have to spend 11.04% more money in 1974 than in 1973 for the same item.

This means that prices in 1974 are 1.11 times higher than average prices since 1973, according to the Bureau of Labor Statistics consumer price index.

The 1973 inflation rate was 6.22%. The inflation rate in 1974 was 11.04%. The 1974 inflation rate is higher compared to the average inflation rate of 3.72% per year between 1974 and 2021.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1974 was 49.30. It was 44.40 in the previous year, 1973. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation.

Contents

⌃

Average inflation rate | 11.04% |

Converted amount ($1 base) | $1.11 |

Price difference ($1 base) | $0.11 |

CPI in 1973 | 44.400 |

CPI in 1974 | 49.300 |

Inflation in 1973 | 6.22% |

Inflation in 1974 | 11.04% |

$1 in 1973 | $1.11 in 1974 |

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1973 to 1974 (figures shown are purchasing power equivalents of $1):

**Philadelphia, Pennsylvania**: 11.87% average rate, $1 → $1.12, cumulative change of 11.87%**Houston, Texas**: 11.17% average rate, $1 → $1.11, cumulative change of 11.17%**Atlanta, Georgia**: 10.85% average rate, $1 → $1.11, cumulative change of 10.85%**Detroit, Michigan**: 10.83% average rate, $1 → $1.11, cumulative change of 10.83%**New York**: 10.76% average rate, $1 → $1.11, cumulative change of 10.76%**Seattle, Washington**: 10.66% average rate, $1 → $1.11, cumulative change of 10.66%**Chicago, Illinois**: 10.57% average rate, $1 → $1.11, cumulative change of 10.57%**Boston, Massachusetts**: 10.33% average rate, $1 → $1.10, cumulative change of 10.33%**Dallas-Fort Worth, Texas**: 9.92% average rate, $1 → $1.10, cumulative change of 9.92%**San Francisco, California**: 9.32% average rate, $1 → $1.09, cumulative change of 9.32%

Philadelphia, Pennsylvania experienced the highest rate of inflation during the 1 years between 1973 and 1974 (11.87%).

San Francisco, California experienced the lowest rate of inflation during the 1 years between 1973 and 1974 (9.32%).

Note that some locations showing 0% inflation may have not yet reported latest data.

Inflation can also vary widely by country. For comparison, in the UK £1.00 in 1973 would be equivalent to £1.16 in 1974, an absolute change of £0.16 and a cumulative change of 16.04%.

In Canada, CA$1.00 in 1973 would be equivalent to CA$1.13 in 1974, an absolute change of CA$0.13 and a cumulative change of 12.65%.

Compare these numbers to the US's overall absolute change of $0.11 and total percent change of 11.04%.

CPI is the weighted combination of many categories of spending that are tracked by the government. Breaking down these categories helps explain the main drivers behind price changes. This chart shows the average rate of inflation for select CPI categories between 1973 and 1974.

Compare these values to the overall average of 11.04% per year:

Category | Avg Inflation (%) | Total Inflation (%) | $1 in 1973 → 1974 |
---|---|---|---|

Food and beverages | 13.75 | 13.75 | 1.14 |

Housing | 11.23 | 11.23 | 1.11 |

Apparel | 7.41 | 7.41 | 1.07 |

Transportation | 11.21 | 11.21 | 1.11 |

Medical care | 9.31 | 9.31 | 1.09 |

Recreation | 0.00 | 0.00 | 1.00 |

Education and communication | 0.00 | 0.00 | 1.00 |

Other goods and services | 7.18 | 7.18 | 1.07 |

For all these visualizations, it's important to note that not all categories may have been tracked since 1973. This table and charts use the earliest available data for each category.

Our calculations use the following inflation rate formula to calculate the change in value between 1973 and 1974:

CPI in 1974
CPI in 1973

×

1973 USD value

=

1974 USD value

Then plug in historical CPI values. The U.S. CPI was 44.4 in the year 1973 and 49.3 in 1974:

49.344.4

×

$1

=

$1 in 1973 has the same "purchasing power" or "buying power" as $1.11 in 1974.

To get the total inflation rate for the 1 years between 1973 and 1974, we use the following formula:

CPI in 1974 - CPI in 1973CPI in 1973

×

100

=

Plugging in the values to this equation, we get:

49.3 - 44.444.4

×

100

=

The above data describe the CPI for all items. Also of note is the **Core CPI**, which measures inflation for all items except for the more volatile categories of food and energy.
Core inflation averaged 8.25% per year between 1973 and 1974 (vs all-CPI inflation of 11.04%), for an inflation total of 8.25%.

When using the core inflation measurement, $1 in 1973 is equivalent in buying power to $1.08 in 1974, a difference of $0.08. Recall that for All Items, the converted amount is $1.11 with a difference of $0.11.

In 1973, core inflation was 3.49%.

To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 1973, our investment would be * nominally* worth approximately $0.66 in 1974. This is a return on investment of -33.93%, with an absolute return of $-0.34 on top of the original $1.

These numbers are not inflation adjusted, so they are considered *nominal*. In order to evaluate the *real* return on our investment, we must calculate the return with inflation taken into account.

The compounding effect of inflation would account for 9.94% of returns ($0.07) during this period. This means the inflation-adjusted * real* return of our $1 investment is $-0.40. You may also want to account for capital gains tax, which would take your real return down to around $0 for most people.

Original Amount | Final Amount | Change | |
---|---|---|---|

Nominal |
$1 | $0.66 | -33.93% |

RealInflation Adjusted |
$1 | $0.60 | -40.50% |

Information displayed above may differ slightly from other S&P 500 calculators. Minor discrepancies can occur because we use the latest CPI data for inflation, annualized inflation numbers for previous years, and we compute S&P price and dividends from January of 1973 to latest available data for 1974 using average monthly close price.

For more details on the S&P 500 between 1973 and 1974, see the stock market returns calculator.

Politics and news often influence economic performance. Here's what was happening at the time:

- President Richard Nixon announces the end of the Vietnam War.
- The longest war in American history finishes after William Rogers and Nguyen Duy Trinh of US and North Vietnam's army sign a cease-fire.
- The IRA attacks London for the first time following the arrests of 10 of its members.
- The Senate Watergate Committee begins its hearings.

Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (CPI), established in 1913. Inflation data from 1665 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University.

You may use the following MLA citation for this page: “Inflation Rate in 1974 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 17 Oct. 2021, https://www.officialdata.org/inflation-rate-in-1974.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

in2013dollars.com is a reference website maintained by the Official Data Foundation.

Average inflation rate | 11.04% |

Converted amount ($1 base) | $1.11 |

Price difference ($1 base) | $0.11 |

CPI in 1973 | 44.400 |

CPI in 1974 | 49.300 |

Inflation in 1973 | 6.22% |

Inflation in 1974 | 11.04% |

$1 in 1973 | $1.11 in 1974 |