Here are the annual inflation rates since 1929, measured from July to July. Also, the equivalent multiplication factor is shown. For example, something that cost $1 in 1929, would cost $12 today, inflation-adjusted.
Some facts from the above:
- using July rates (July 1929 to July 2007) the inflation was 1,103%, or 12.03X (for an annual rate of 3.24%)
- using average annual rates from 1929 to 2007 the inflation was 1,082%, or 11.82X
- if the price of an ounce of gold was $28 in 1929, today it would be inflation-adjusted to approx. $336.
- gold's peak was $850 in 1980. Since 1980 the inflation rate was approx. 240% (2.5X), inflation corrected price would be $2,140
- from 1929 to today the price of gold has appreciated from $28 to $660, that is 2,157% (22.5X), for an annual rate of 4.07%.
Of course, these are nominal published rates, which are not considered by many to be real rates (they exclude energy and food) and who knows what the rates represented 50 years ago (different baskets).
If we add extra percentage points to each annual inflation rate, the inflation since 1929 would be:
- Extra 1%/y: 2,454% (25.5X) (gold at $714)
- Extra 2%/y: 5,281% (53.8X) (gold at $1,506)
- Extra 3%/y: 11,160% (112.6X) (gold at $3,152)