Buying power of $270 in 1975

This chart shows a calculation of buying power equivalence for $270 in 1975 (price index tracking began in 1635).

For example, if you started with $270, you would need to end with $57.82 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $270 is equivalent to $57.82 over time, that means that the "real value" of a single U.S. dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1975 dollars, the chart below shows how $270 is worth less over 43 years.

According to the Bureau of Labor Statistics, each of these USD amounts below is equal in terms of what it could buy at the time:

This conversion table shows various other 1975 amounts in 2018 dollars, based on the -78.59% change in prices:

Inflation by City

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 2018 to 1975 (figures shown are purchasing power equivalents of $270):

• San Francisco, California: 4.07% average rate, $270 → $1,498.64, cumulative change of 455.05%
• Seattle, Washington: 3.97% average rate, $270 → $1,439.24, cumulative change of 433.05%
• Boston, Massachusetts: 3.80% average rate, $270 → $1,344.66, cumulative change of 398.02%
• New York: 3.69% average rate, $270 → $1,282.50, cumulative change of 375.00%
• Dallas-Fort Worth, Texas: 3.63% average rate, $270 → $1,252.69, cumulative change of 363.96%
• Chicago, Illinois: 3.56% average rate, $270 → $1,216.89, cumulative change of 350.70%
• Atlanta, Georgia: 3.54% average rate, $270 → $1,206.15, cumulative change of 346.72%
• Philadelphia, Pennsylvania: 3.52% average rate, $270 → $1,195.45, cumulative change of 342.76%
• Houston, Texas: 3.52% average rate, $270 → $1,193.83, cumulative change of 342.16%
• Detroit, Michigan: 3.46% average rate, $270 → $1,163.60, cumulative change of 330.96%

San Francisco, California experienced the highest rate of inflation during the 43 years between 1975 and 2018 (4.07%).

Detroit, Michigan experienced the lowest rate of inflation during the 43 years between 1975 and 2018 (3.46%).

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

Inflation by Country

Inflation can also vary widely by country. For comparison, in the UK £270.00 in 2018 would be equivalent to £32.97 in 1975, an absolute change of £-237.03 and a cumulative change of -87.79%.

In Canada, CA$270.00 in 2018 would be equivalent to CA$58.60 in 1975, an absolute change of CA$-211.40 and a cumulative change of -78.30%.

Compare these numbers to the US's overall absolute change of $-212.18 and total percent change of -78.59%.

Inflation by Spending Category

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 2018 and 1975.

Compare these values to the overall average of 3.65% per year:

The graph below compares inflation in categories of goods over time. Click on a category such as "Food" to toggle it on or off:

For all these visualizations, it's important to note that not all categories may have been tracked since 2018. This table and charts use the earliest available data for each category.

How to calculate inflation rate for $270, 1975 to 2018

Our calculations use the following inflation rate formula to calculate the change in value between 1975 and 2018:

Then plug in historical CPI values. The U.S. CPI was 251.23 in the year 2018 and 53.8 in 1975:

$270 in 2018 has the same "purchasing power" or "buying power" as $57.82 in 1975.

To get the total inflation rate for the 43 years between 1975 and 2018, we use the following formula:

Plugging in the values to this equation, we get:

Alternate Measurements of Inflation

There are multiple ways to measure inflation. Published rates of inflation will vary depending on methodology. The Consumer Price Index, used above, is the most common standard used globally.

Alternative measurements are sometimes used based on context and economic/political circumstances. Below are a few examples of alternative measurements.

Personal Consumption Expenditures (PCE) Inflation

The PCE Price Index is the U.S. Federal Reserve's preferred measure of inflation, compiled by the Bureau of Economic Analysis. It measures the change in prices of goods and services purchased by consumers.

The PCE Price Index changed by 3.15% per year on average between 2018 and 1975. The total PCE inflation between these dates was 279.92%. In 2018, PCE inflation was 8.34%.

This means that the PCE Index equates $270 in 2018 with $1,025.79 in 1975, a difference of $755.79. Compare this to the standard CPI measurement, which equates $270 with $57.82. The PCE measured 358.51% inflation compared to standard CPI.

For more information on the difference between PCE and CPI, see this analysis provided by the Bureau of Labor Statistics.

Core Inflation

Also of note is the Core CPI, which uses the standard CPI but omits the more volatile categories of food and energy.

Core inflation averaged 3.70% per year between 2018 and 1975 (vs all-CPI inflation of 3.65%), for an inflation total of 377.93%. In 2018, core inflation was 9.21%.

When using the core inflation measurement, $270 in 2018 is equivalent in buying power to $1,290.40 in 1975, a difference of $1,020.40. Recall that the converted amount is $57.82 when all items including food and energy are measured.

Data source & citation

Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (CPI), established in 1913. Price index data from 1774 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University and from the American Antiquarian Society. Price index data from 1634 to 1773 is from the American Antiquarian Society, using British pound equivalents.

» Read more about inflation and investment.