According to the Bureau of Labor Statistics consumer price index, the dollar experienced an average inflation rate of 3.76% per year. Prices in 2018 are 1682.5% higher than prices in 1940.
In other words, $25,000 in the year 1940 is equivalent in purchasing power to $445,632.14 in 2018, a difference of $420,632.14 over 78 years.
Compared to last year's annual rate, the inflation rate in 2018 is now 1.95%1. If this number holds, $25,000 today would be equivalent to $25,486.96 next year. The current inflation rate page gives more detail on the latest official inflation rates.
|Cumulative price change||1682.53%|
|Average inflation rate||3.76%|
|Price difference ($25,000 base)||$420,632.14|
|CPI in 1940||14|
|CPI in 2018||249.554|
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: “$25,000 in 1940 → 2018 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 24 May. 2018, https://www.officialdata.org/1940-dollars?amount=25000.