Management And Accounting Web

Inflation History: CPI 1920-2023 and CPI-W SS COLAs 1975-2022

Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida

Replacement Cost Main  | Economics Related Main  |  History and Development Main

The consumer price index or CPI and the CPI-W are two popular measures of the rate of inflation. The CPI-W is the Consumer Price Index for uban wage earners and clerical workers. The two following illustrations of the CPI are based on data from the Federal Reserve Bank of Minneapolis.1

Consumer Price Index 1920-2023 Bar Chart

Rate of Inflation based on The Consumer Price Index 1920-2023

1920: 15.6%
1921: -10.9%
1922: -6.2%
1923: 1.8%
1925: 2.4
1926: 0.9
1927: -1.9
1928: -1.2
1929: 0.0
1930: -2.2
1931: -8.9
1932: -10.3
1933: -5.2
1934: 3.5
1935: 2.6
1936: 1.0
1937: 3.7
1938: -2.0
1939: -1.3
1940: 0.7
1941: 5.1
1942: 10.9
1943: 6.0
1944: 1.6
1945: 2.3
1946: 8.5
1947: 14.4
1948: 7.7
1949: -1.0
1950: 1.1
1951: 7.9
1952: 2.3
1953: 0.8
1954: 0.3
1955:-0.3
1956: 1.5
1957: 3.3
1958: 2.7
1959: 1.08
1960: 1.5
1961: 1.1
1962: 1.2
1963: 1.2
1964: 1.3
1965: 1.6
1966: 3.0
1967: 2.8
1968: 4.3
1969: 5.5
1970: 5.8
1971: 4.3
1972: 3.3
1973: 6.2
1974: 11.1
1975: 9.1
1976: 5.7
1977: 6.5
1978: 7.6
1979: 11.3
1980: 13.5
1981: 10.3
1982: 6.1
1983: 3.2
1984: 4.3
1985: 3.5
1986: 1.9
1987: 3.7
1988: 4.1
1989: 4.8
1990: 5.4
1991: 4.2
1992: 3.0
1993: 3.0
1994: 2.6
1995: 2.8
1996: 2.9
1997: 2.3
1998: 1.6
1999: 2.2
2000: 3.4
2001: 2.8
2002: 1.6
2003: 2.3
2004: 2.7
2005: 3.4
2006: 3.2
2007: 2.9
2008: 3.8
2009: -0.4
2010: 1.6
2011: 3.2
2012: 2.1
2013: 1.5
2014: 1.6
2015: 0.1
2016: 1.3
2017: 2.1
2018: 2.4
2019: 1.8
2020: 1.2
2021: 4.7
2022: 8.0
2023: 5.8 est.

Social Security COLAs

Cost-of-living allowances (COLAs) for Social Security benefits started in 1975. COLAs are based on the CPI-W. As noted above this is the Consumer Price Index for uban wage earners and clerical workers.2

Social Security COLAs based on The Consumer Price Index-W 1975-2022

1975: 8.0%
1976: 6.4%
1977: 5.9%
1978: 6.5%
1979: 9.9
1980: 14.3
1981: 11.2
1982: 7.4
1983: 3.5
1984: 3.5
1985: 3.1
1986: 1.3
1987: 4.2
1988: 4.0
1989: 4.7
1990: 5.4
1991: 3.7
1992: 3.0
1993: 2.6
1994: 2.8
1995: 2.6
1996: 2.9
1997: 2.1
1998: 1.3
1999: 2.5
2000: 3.5
2001: 2.6
2002: 1.4
2003: 2.1
2004: 2.7
2005: 4.1
2006: 3.3
2007: 2.3
2008: 5.8
2009: 0.0
2010: 0.0
2011: 3.6
2012: 1.7
2013: 1.5
2014: 1.7
2015: 0.0
2016: 0.3
2017: 2.0
2018: 2.8
2019: 1.6
2020: 1.3
2021: 5.9
2022: 8.7

The following graphic illustrations compare the CPI and CPI-W based COLA from 1975-2022. Over this 48 year period, the COLA was greater than the CPI 18 times, less that the CPI 25 times, and equal to the CPI 5 times. The CPI for 2023 is an estimate, but there is no estimate for the 2023 COLA.

CPI and COLAs 1975-2022 Bar chart

CPI and COLAs 1975-2022 line graph

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1 The Federal Reserve Bank of Minneapolis

2 Social Security COLA Series

3 The Military Pay Chart

4 Inflation Calculator
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