# \$2 in 1950 → \$20.71 in 2018

## Inflation Calculator

\$

### U.S. Inflation Rate, 1950-2018 (\$2)

According to the Bureau of Labor Statistics consumer price index, the dollar experienced an average inflation rate of 3.50% per year. Prices in 2018 are 935.5% higher than prices in 1950.

In other words, \$2 in the year 1950 is equivalent in purchasing power to \$20.71 in 2018, a difference of \$18.71 over 68 years.

Compared to last year's annual rate, the inflation rate in 2018 is now 1.95%1. If this number holds, \$2 today would be equivalent to \$2.04 next year. The current inflation rate page gives more detail on the latest official inflation rates.

 Cumulative price change 935.50% Average inflation rate 3.50% Price difference (\$2 base) \$18.71 CPI in 1950 24.1 CPI in 2018 249.554

#### Inflation rates for specific categories

Public transportation · Medical care · Rent of primary residence · More

#### Inflation-adjusted measures

S&P 500 price · S&P 500 earnings · Shiller P/E

### How to calculate the inflation rate for \$2 since 1950

This inflation calculator uses the following inflation rate formula:

CPI in 2018 / CPI in 1950 * 1950 USD value = 2018 USD value

Then plug in historical CPI values. The U.S. CPI was 24.1 in the year 1950 and 249.554 in 2018:

249.554 / 24.1 * \$2 = \$20.71

\$2 in 1950 has the same "purchasing power" as \$20.71 in 2018.

### News headlines from 1950

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

• Jerusalem is proclaimed the capital of Israel by Knesset
• North Korea invades South Korea.
• Harry Truman announces that America will seek to develop a hydrogen bomb.
• Chinese forces occupy Tibet.

### Inflation Data Source

Raw data for these calculations comes from the Bureau of Labor Statistics' (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: “\$2 in 1950 → 2018 | Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 25 May. 2018, https://www.officialdata.org/1950-dollars?amount=2.