Historical data · sourced snapshots
Dollar Purchasing Power Loss Since 1971
Purchasing power is what a dollar actually buys. This page measures how much of a 1971 dollar’s buying power has been lost, using the Bureau of Labor Statistics CPI-U index. The formula is 1 minus the 1971 index divided by the later index. A loss of 88% means a dollar today buys what about 12 cents bought in 1971.
Historical chart
Jan 1971 to Aug 2026
How much of a 1971 dollar’s buying power has been lost, derived from the monthly CPI-U price index. 1971 is the zero-loss reference year.
| Period | Value | Context |
|---|---|---|
| Dec 1971 | 1.5% | Starting reference year |
| Dec 1972 | 4.7% | Observation for Dec 1972 |
| Dec 1973 | 12.6% | Observation for Dec 1973 |
| Dec 1974 | 22.0% | Observation for Dec 1974 |
| Dec 1975 | 27.2% | Observation for Dec 1975 |
| Dec 1976 | 30.7% | Observation for Dec 1976 |
| Dec 1977 | 35.0% | Observation for Dec 1977 |
| Dec 1978 | 40.4% | Observation for Dec 1978 |
| Dec 1979 | 47.4% | Observation for Dec 1979 |
| Dec 1980 | 53.1% | Inflation shock erodes cash |
| Dec 1981 | 57.0% | Observation for Dec 1981 |
| Dec 1982 | 58.6% | Observation for Dec 1982 |
| Dec 1983 | 60.1% | Observation for Dec 1983 |
| Dec 1984 | 61.6% | Observation for Dec 1984 |
| Dec 1985 | 63.0% | Observation for Dec 1985 |
| Dec 1986 | 63.5% | Observation for Dec 1986 |
| Dec 1987 | 65.0% | Observation for Dec 1987 |
| Dec 1988 | 66.5% | Observation for Dec 1988 |
| Dec 1989 | 67.9% | Observation for Dec 1989 |
| Dec 1990 | 69.8% | Long-term loss compounds |
| Dec 1991 | 70.7% | Observation for Dec 1991 |
| Dec 1992 | 71.6% | Observation for Dec 1992 |
| Dec 1993 | 72.3% | Observation for Dec 1993 |
| Dec 1994 | 73.0% | Observation for Dec 1994 |
| Dec 1995 | 73.7% | Observation for Dec 1995 |
| Dec 1996 | 74.6% | Observation for Dec 1996 |
| Dec 1997 | 75.0% | Observation for Dec 1997 |
| Dec 1998 | 75.4% | Observation for Dec 1998 |
| Dec 1999 | 76.0% | Observation for Dec 1999 |
| Dec 2000 | 76.8% | Price level keeps climbing |
| Dec 2001 | 77.2% | Observation for Dec 2001 |
| Dec 2002 | 77.7% | Observation for Dec 2002 |
| Dec 2003 | 78.2% | Observation for Dec 2003 |
| Dec 2004 | 78.9% | Observation for Dec 2004 |
| Dec 2005 | 79.6% | Observation for Dec 2005 |
| Dec 2006 | 80.1% | Observation for Dec 2006 |
| Dec 2007 | 80.9% | Observation for Dec 2007 |
| Dec 2008 | 80.8% | Observation for Dec 2008 |
| Dec 2009 | 81.4% | Observation for Dec 2009 |
| Dec 2010 | 81.6% | Post-crisis baseline |
| Dec 2011 | 82.2% | Observation for Dec 2011 |
| Dec 2012 | 82.5% | Observation for Dec 2012 |
| Dec 2013 | 82.8% | Observation for Dec 2013 |
| Dec 2014 | 82.9% | Observation for Dec 2014 |
| Dec 2015 | 83.0% | Observation for Dec 2015 |
| Dec 2016 | 83.3% | Observation for Dec 2016 |
| Dec 2017 | 83.7% | Observation for Dec 2017 |
| Dec 2018 | 84.0% | Observation for Dec 2018 |
| Dec 2019 | 84.3% | Observation for Dec 2019 |
| Dec 2020 | 84.6% | Pre-surge reference |
| Dec 2021 | 85.6% | Observation for Dec 2021 |
| Dec 2022 | 86.5% | Observation for Dec 2022 |
| Dec 2023 | 86.9% | Observation for Dec 2023 |
| Dec 2024 | 87.3% | Observation for Dec 2024 |
| Dec 2025 | 87.6% | Observation for Dec 2025 |
| Aug 2026 | 87.9% | CPI-U 2026-08 versus the 1971 annual average |
What the numbers mean
Reading the purchasing power history
The loss compounds. Roughly half of a 1971 dollar’s buying power was gone by 1980 after the decade’s inflation shock, and each later decade removed a smaller-looking slice of a smaller remainder. The pattern is why the inflation loss calculator shows daily and monthly figures: small percentages on large balances add up.
Related pages
Inflation calculator · Inflation loss calculator · Purchasing power explained
Sourced snapshots are rounded; the latest point is refreshed by a scheduled data update and carries its observation date. Methodology · Report a correction.
Questions
Purchasing power history FAQ
Why start in 1971?
In August 1971 the United States ended the dollar’s convertibility to gold. It is a common reference point for the modern fiat-dollar era and matches the gold comparison page.
Is this the same as the inflation rate?
No. Inflation measures how much prices rose. Purchasing-power loss measures how much less a fixed amount of money buys. A 25% price increase is a 20% purchasing-power loss. The inflation calculator formulas explain the difference.
How do I see this for my own money?
Enter an amount and a year in the inflation calculator, or use the inflation loss calculator to see what a cash balance loses per day, month, and year at today’s rate.