$12 in 1985 is worth $12.22 in 1986


$12 in 1985 has the same purchasing power as $12.22 in 1986. Over the 1 year this is a change of $0.22.

The average inflation rate of the dollar between 1985 and 1986 was 2.71% per year. The cumulative price increase of the dollar over this time was 1.86%.

The value of $12 from 1985 to 1986

So what does this data mean? It means that the prices in 1986 are 0.12 higher than the average prices since 1985. A dollar in 1986 can buy 98.18% of what it could buy in 1985.

These inflation figures use the Bureau of Labor Statistics (BLS) consumer price index to calculate the value of $12 between 1985 and 1986.

The inflation rate for 1985 was 3.56%, while the inflation rate for 1986 was 1.86%. The 1986 inflation rate is lower than the average inflation rate of 2.67% per year between 1986 and 2021.

USD Inflation Since 1913


The Buying Power of $12 in 1985

We can look at the buying power equivalent for $12 in 1985 to see how much you would need to adjust for in order to beat inflation. For 1985 to 1986, if you started with $12 in 1985, you would need to have $12.22 in 1985 to keep up with inflation rates.

So if we are saying that $12 is equivalent to $12.22 over time, you can see the core concept of inflation in action. The "real value" of a single dollar decreases over time. It will pay for fewer items at the store than it did previously.


Value of $12 Over Time


Year Dollar Value Inflation Rate
1985 $12.00 3.56%
1986 $12.22 1.86%

US Dollar Inflation Conversion


Initial Value Equivalent Value
$1.00 in 1985 $1.02 in 1986
$5.00 in 1985 $5.09 in 1986
$10.00 in 1985 $10.19 in 1986
$50.00 in 1985 $50.93 in 1986
$100.00 in 1985 $101.86 in 1986
$500.00 in 1985 $509.29 in 1986
$1,000.00 in 1985 $1,018.59 in 1986
$5,000.00 in 1985 $5,092.94 in 1986
$10,000.00 in 1985 $10,185.87 in 1986
$50,000.00 in 1985 $50,929.37 in 1986
$100,000.00 in 1985 $101,858.74 in 1986
$500,000.00 in 1985 $509,293.68 in 1986
$1,000,000.00 in 1985 $1,018,587.36 in 1986

Calculate Inflation Rate for $12 from 1985 to 1986

To calculate the inflation rate of $12 from 1985 to 1986, we use the following formula:

$$\dfrac{ 1985\; USD\; value \times CPI\; in\; 1986 }{ CPI\; in\; 1985 } = 1986\; USD\; value $$

We then replace the variables with the historical CPI values. The CPI in 1985 was 107.6 and 109.6 in 1986.

$$\dfrac{ \$12 \times 109.6 }{ 107.6 } = \text{ \$12.22 } $$


To work out the total inflation rate for the 1 year between 1985 and 1986, we can use a different formula:

$$ \dfrac{\text{CPI in 1986 } - \text{ CPI in 1985 } }{\text{CPI in 1985 }} \times 100 = \text{Cumulative rate for 1 year} $$


$$ \dfrac{\text{ 109.6 } - \text{ 107.6 } }{\text{ 107.6 }} \times 100 = \text{ 1.86\% } $$

Inflation Rate Definition





Link To or Reference This Page


  • "$12 in 1985 is worth $12.22 in 1986". StudyFinance.com. Accessed on October 15, 2021. https://studyfinance.com/inflation/us/1985/12/1986/.

  • "$12 in 1985 is worth $12.22 in 1986". StudyFinance.com, https://studyfinance.com/inflation/us/1985/12/1986/. Accessed 15 October, 2021

  • $12 in 1985 is worth $12.22 in 1986. StudyFinance.com. Retrieved from https://studyfinance.com/inflation/us/1985/12/1986/.