Inflation in 1721 and its effect on dollar value
$1 in 1720 is equivalent in purchasing power to about $0.95 in 1721. The dollar had an average deflation rate of -4.76% per year since 1720, producing a cumulative price change of -4.76%. Purchasing power increased by 4.76% in 1721 compared to 1720. On average, you would have to spend 4.76% less money in 1721 than in 1720 for the same item. This is an example of deflation.
This means that prices in 1721 are 4.76% lower than average prices since 1720, according to the Bureau of Labor Statistics consumer price index.
The inflation rate in 1720 was -6.67%. The inflation rate in 1721 was -4.76%. The 1721 inflation rate is lower compared to the average inflation rate of 1.45% per year between 1721 and 2025.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1721 was 4.00. It was 4.20 in the previous year, 1720. The difference in CPI between the years is used by the Bureau of Labor Statistics to officially determine inflation. Because the 1721 CPI is less than 1720 CPI, negative inflation (also known as deflation) has occurred.
⌃
| Average inflation rate | -4.76% |
| Converted amount $1 base | $0.95 |
| Price difference $1 base | $-0.05 |
| CPI in 1720 | 4.200 |
| CPI in 1721 | 4.000 |
| Inflation in 1720 | -6.67% |
| Inflation in 1721 | -4.76% |
| $1 in 1720 | $0.95 in 1721 |
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 1720 and 1721.
Compare these values to the overall average of -4.76% per year:
| Category | Avg Inflation (%) | Total Inflation (%) | $1 in 1720 → 1721 |
|---|---|---|---|
| Food and beverages | 0.00 | 0.00 | 1.00 |
| Housing | 0.00 | 0.00 | 1.00 |
| Apparel | 0.00 | 0.00 | 1.00 |
| Transportation | 0.00 | 0.00 | 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 1720. This table and charts use the earliest available data for each category.
How to calculate inflation rate for $1, 1720 to 1721
Our calculations use the following inflation rate formula to calculate the change in value between 1720 and 1721:
CPI in 1721 CPI in 1720
×
1720 USD value
=
1721 USD value
Then plug in historical CPI values. The U.S. CPI was 4.2 in the year 1720 and 4 in 1721:
44.2
×
$1
=
$0.95
$1 in 1720 has the same "purchasing power" or "buying power" as $0.95 in 1721.
To get the total inflation rate for the 1 years between 1720 and 1721, we use the following formula:
CPI in 1721 - CPI in 1720CPI in 1720
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
4 - 4.24.2
×
100
=
-5%
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.
You may use the following MLA citation for this page: “Inflation Rate in 1721 | Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Dec. 2024, https://www.officialdata.org/inflation-rate-in-1721.
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 | -4.76% |
| Converted amount $1 base | $0.95 |
| Price difference $1 base | $-0.05 |
| CPI in 1720 | 4.200 |
| CPI in 1721 | 4.000 |
| Inflation in 1720 | -6.67% |
| Inflation in 1721 | -4.76% |
| $1 in 1720 | $0.95 in 1721 |