$1 in 1937 is equivalent in purchasing power to about $0.98 in 1938. The dollar had an average **deflation** rate of -2.08% per year since 1937, producing a cumulative price change of -2.08%. Purchasing power *increased* by 2.08% in 1938 compared to 1937. On average, you would have to spend 2.08% *less* money in 1938 than in 1937 for the same item. This is an example of **deflation**.

This means that prices in 1938 are 2.08% lower than average prices since 1937, according to the Bureau of Labor Statistics consumer price index.

The inflation rate in 1937 was 3.60%. The inflation rate in 1938 was -2.08%. The 1938 inflation rate is lower compared to the average inflation rate of 3.68% per year between 1938 and 2024.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1938 was 14.10. It was 14.40 in the previous year, 1937. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1938 CPI is less than 1937 CPI, negative inflation (also known as deflation) has occurred.

Contents

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Average inflation rate | -2.08% |

Converted amount $1 base | $0.98 |

Price difference $1 base | $-0.02 |

CPI in 1937 | 14.400 |

CPI in 1938 | 14.100 |

Inflation in 1937 | 3.60% |

Inflation in 1938 | -2.08% |

$1 in 1937 | $0.98 in 1938 |

Inflation can vary widely by city, even within the United States. Here's how some cities fared in 1937 to 1938 (figures shown are purchasing power equivalents of $1):

**San Francisco, California**: 0.46% average rate, $1 → $1.00, cumulative change of 0.46%**Houston, Texas**: -0.06% average rate, $1 → $1.00, cumulative change of -0.06%**Seattle, Washington**: -0.25% average rate, $1 → $1.00, cumulative change of -0.25%**Detroit, Michigan**: -0.51% average rate, $1 → $0.99, cumulative change of -0.51%**Chicago, Illinois**: -0.71% average rate, $1 → $0.99, cumulative change of -0.71%**New York**: -1.68% average rate, $1 → $0.98, cumulative change of -1.68%**Atlanta, Georgia**: -2.07% average rate, $1 → $0.98, cumulative change of -2.07%**Philadelphia, Pennsylvania**: -2.08% average rate, $1 → $0.98, cumulative change of -2.08%**Boston, Massachusetts**: -2.55% average rate, $1 → $0.97, cumulative change of -2.55%

San Francisco, California experienced the highest rate of inflation during the 1 years between 1937 and 1938 (0.46%).

Boston, Massachusetts experienced the lowest rate of inflation during the 1 years between 1937 and 1938 (-2.55%).

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 1937 would be equivalent to £1.01 in 1938, an absolute change of £0.01 and a cumulative change of 1.20%.

In Canada, CA$1.00 in 1937 would be equivalent to CA$1.01 in 1938, an absolute change of CA$0.01 and a cumulative change of 0.54%.

Compare these numbers to the US's overall absolute change of $-0.02 and total percent change of -2.08%.

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 1937 and 1938.

Compare these values to the overall average of -2.08% per year:

Category | Avg Inflation (%) | Total Inflation (%) | $1 in 1937 → 1938 |
---|---|---|---|

Food and beverages | 0.00 | 0.00 | 1.00 |

Housing | 0.00 | 0.00 | 1.00 |

Apparel | -1.26 | -1.26 | 0.99 |

Transportation | 0.41 | 0.41 | 1.00 |

Medical care | 0.00 | 0.00 | 1.00 |

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 |

For all these visualizations, it's important to note that not all categories may have been tracked since 1937. 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 1937 and 1938:

CPI in 1938 CPI in 1937

×

1937 USD value

=

1938 USD value

Then plug in historical CPI values. The U.S. CPI was 14.4 in the year 1937 and 14.1 in 1938:

14.114.4

×

$1

=

$1 in 1937 has the same "purchasing power" or "buying power" as $0.98 in 1938.

To get the total inflation rate for the 1 years between 1937 and 1938, we use the following formula:

CPI in 1938 - CPI in 1937CPI in 1937

×

100

=

Plugging in the values to this equation, we get:

14.1 - 14.414.4

×

100

=

To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 1937, our investment would be * nominally* worth approximately $0.80 in 1938. This is a return on investment of -20.23%, with an absolute return of $-0.20 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 -2.13% of returns ($-0.02) during this period. This means the inflation-adjusted * real* return of our $1 investment is $-0.19. You may also want to account for capital gains tax, which would take your real return down to around $0 for most people.

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

Nominal | $1 | $0.80 | -20.23% |

RealInflation Adjusted | $1 | $0.81 | -18.53% |

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 1937 to latest available data for 1938 using average monthly close price.

For more details on the S&P 500 between 1937 and 1938, see the stock market returns calculator.

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.

You may use the following MLA citation for this page: “Inflation Rate in 1938 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 29 Oct. 2024, https://www.officialdata.org/inflation-rate-in-1938.

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.

Average inflation rate | -2.08% |

Converted amount $1 base | $0.98 |

Price difference $1 base | $-0.02 |

CPI in 1937 | 14.400 |

CPI in 1938 | 14.100 |

Inflation in 1937 | 3.60% |

Inflation in 1938 | -2.08% |

$1 in 1937 | $0.98 in 1938 |