$1 in 1945 is equivalent in purchasing power to about $1.34 in 1950, an increase of $0.34 over 5 years. The dollar had an average inflation rate of 6.01% per year between 1945 and 1950, producing a cumulative price increase of 33.89%.

This means that prices in 1950 are 1.34 times higher than average prices since 1945, according to the Bureau of Labor Statistics consumer price index.

The 1945 inflation rate was 2.27%. The inflation rate in 1950 was 1.26%. The 1950 inflation rate is lower compared to the average inflation rate of 3.48% per year between 1950 and 2021.

Contents

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Cumulative price change | 33.89% |

Average inflation rate | 6.01% |

Converted amount ($1 base) | $1.34 |

Price difference ($1 base) | $0.34 |

CPI in 1945 | 18.000 |

CPI in 1950 | 24.100 |

Inflation in 1945 | 2.27% |

Inflation in 1950 | 1.26% |

$1 in 1945 | $1.34 in 1950 |

This chart shows a calculation of buying power equivalence for $1 in 1945 (price index tracking began in 1635).

For example, if you started with $1, you would need to end with $1.34 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $1 is equivalent to $1.34 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 1945 dollars, the chart below shows how $1 is worth less over 5 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 1945 amounts in 1950 dollars, based on the 33.89% change in prices:

Initial value | Equivalent value |
---|---|

$1 dollar in 1945 | $1.34 dollars in 1950 |

$5 dollars in 1945 | $6.69 dollars in 1950 |

$10 dollars in 1945 | $13.39 dollars in 1950 |

$50 dollars in 1945 | $66.94 dollars in 1950 |

$100 dollars in 1945 | $133.89 dollars in 1950 |

$500 dollars in 1945 | $669.44 dollars in 1950 |

$1,000 dollars in 1945 | $1,338.89 dollars in 1950 |

$5,000 dollars in 1945 | $6,694.44 dollars in 1950 |

$10,000 dollars in 1945 | $13,388.89 dollars in 1950 |

$50,000 dollars in 1945 | $66,944.44 dollars in 1950 |

$100,000 dollars in 1945 | $133,888.89 dollars in 1950 |

$500,000 dollars in 1945 | $669,444.44 dollars in 1950 |

$1,000,000 dollars in 1945 | $1,338,888.89 dollars in 1950 |

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1945 to 1950 (figures shown are purchasing power equivalents of $1):

**Houston, Texas**: 7.14% average rate, $1 → $1.41, cumulative change of 41.16%**Chicago, Illinois**: 6.77% average rate, $1 → $1.39, cumulative change of 38.77%**Detroit, Michigan**: 6.08% average rate, $1 → $1.34, cumulative change of 34.34%**Atlanta, Georgia**: 6.03% average rate, $1 → $1.34, cumulative change of 34.02%**Boston, Massachusetts**: 5.93% average rate, $1 → $1.33, cumulative change of 33.40%**Philadelphia, Pennsylvania**: 5.92% average rate, $1 → $1.33, cumulative change of 33.29%**Seattle, Washington**: 5.76% average rate, $1 → $1.32, cumulative change of 32.29%**New York**: 5.50% average rate, $1 → $1.31, cumulative change of 30.72%**San Francisco, California**: 5.45% average rate, $1 → $1.30, cumulative change of 30.38%

Houston, Texas experienced the highest rate of inflation during the 5 years between 1945 and 1950 (7.14%).

San Francisco, California experienced the lowest rate of inflation during the 5 years between 1945 and 1950 (5.45%).

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 1945 would be equivalent to £1.26 in 1950, an absolute change of £0.26 and a cumulative change of 25.95%.

In Canada, CA$1.00 in 1945 would be equivalent to CA$1.40 in 1950, an absolute change of CA$0.40 and a cumulative change of 40.22%.

Compare these numbers to the US's overall absolute change of $0.34 and total percent change of 33.89%.

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 1945 and 1950.

Compare these values to the overall average of 6.01% per year:

Category | Avg Inflation (%) | Total Inflation (%) | $1 in 1945 → 1950 |
---|---|---|---|

Food and beverages | 0.00 | 0.00 | 1.00 |

Housing | 0.00 | 0.00 | 1.00 |

Apparel | 5.15 | 28.52 | 1.29 |

Transportation | 7.37 | 42.67 | 1.43 |

Medical care | 4.90 | 27.02 | 1.27 |

Recreation | 0.00 | 0.00 | 1.00 |

Education and communication | 0.00 | 0.00 | 1.00 |

Other goods and services | 0.00 | 0.00 | 1.00 |

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 1945. 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 1945 and 1950:

CPI in 1950
CPI in 1945

×

1945 USD value

=

1950 USD value

Then plug in historical CPI values. The U.S. CPI was 18 in the year 1945 and 24.1 in 1950:

24.118

×

$1

=

$1 in 1945 has the same "purchasing power" or "buying power" as $1.34 in 1950.

To get the total inflation rate for the 5 years between 1945 and 1950, we use the following formula:

CPI in 1950 - CPI in 1945CPI in 1945

×

100

=

Plugging in the values to this equation, we get:

24.1 - 1818

×

100

=

The average inflation rate of 6.01% has a compounding effect between 1945 and 1950. As noted above, this yearly inflation rate compounds to produce an overall price difference of 33.89% over 5 years.

To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 1945, our investment would be * nominally* worth approximately $2.17 in 1950. This is a return on investment of 117.30%, with an absolute return of $1.17 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 25.31% of returns ($0.55) during this period. This means the inflation-adjusted * real* return of our $1 investment is $0.62. You may also want to account for capital gains tax, which would take your real return down to around $1 for most people.

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

Nominal |
$1 | $2.17 | 117.30% |

RealInflation Adjusted |
$1 | $1.62 | 62.30% |

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 1945 to latest available data for 1950 using average monthly close price.

For more details on the S&P 500 between 1945 and 1950, see the stock market returns calculator.

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

- The USSR captures Budapest from Germany in a battle that kills 159,000 people.
- The US Fleet captures Iwo Jima.
- 1,500 US Navy ships bomb Okinawa: the operation is believed to be the largest of World War II
- Iwo Jima is occupied by America, costing 6,000 American lives and a further 18,000 Japanese lives.
- Buchenwald, the first Nazi concentration camp, is liberated.

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: “$1 in 1945 → 1950 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Oct. 2021, https://www.officialdata.org/us/inflation/1945?amount=1&endYear=1950.

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.

Cumulative price change | 33.89% |

Average inflation rate | 6.01% |

Converted amount ($1 base) | $1.34 |

Price difference ($1 base) | $0.34 |

CPI in 1945 | 18.000 |

CPI in 1950 | 24.100 |

Inflation in 1945 | 2.27% |

Inflation in 1950 | 1.26% |

$1 in 1945 | $1.34 in 1950 |