Comparing 1980 and 2010 Prices
Are Americans as Poor as They Feel? What Americans Are Really Paying for the Things They Buy MostFor many Americans, thinking back to the days of 99¢ gas and 50¢ cups of coffee, it may be cathartic to grumble about how expensive life has become, especially during the current economic downturn. The reality, however, is that a lot of things aren't as expensive as we think—and many things actually cost less in relative terms.A look at the cost of living between 1980 and 2010 shows that nominal income rose more than overall consumer prices (nominal income is income not adjusted for inflation). The price of many day-to-day expenses such as food and even energy increased at a slower pace than overall consumer prices, which means their relative costs are lower, while some big-ticket items, such as education and health care, became more expensive, causing a shift in spending.
Three Decades of Price Changes
When you look at the price tags on consumer goods, it would seem that costs have skyrocketed over the last 30 years. If you adjust for inflation, however, the relative cost of items such as food, manufactured goods, and energy has fallen since 1980, while prices for other necessities such as housing, education, and health care have increased significantly. Moreover, consumers have taken to new services that carry bills they didn't have to pay in the 1980s: Payments for Internet access, cable TV, and cell phones together total more than $1,000 per year in bills for many Americans, according to a February report in The New York Times. Businessweek.com compared national average prices in 1980 and 2010 for 35 products and services that range from milk and bread to haircuts and doctor's visits. Comparative figures are based on numbers provided by the Council for Community and Economic Research's ACCRA Cost of Living Index, the U.S. Bureau of Labor Statistics Consumer Expenditure Survey, and other pricing-data sources.
Personal Computers
1981: $3,693 in 2009 dollars (*$1,565 in 1981 dollars)
2009: **$710
Change in real dollars: -80.8 percent
Coffee
1 lb., ground roast
1980: $8.38 in 2010 dollars ($3.18* in 1980 dollars)
2010: $3.70*
Change in real dollars: -55.9 percent
Coca-Cola
2-liter bottle
1980: $3.35 in 2010 dollars ($1.27 in 1980 dollars)
2010: $1.51
Change in real dollars: -54.9 percent
Sugar
5 lbs.
1980: $4.64 in 2010 dollars ($1.76 in 1980 dollars)
2010: $2.30
Change in real dollars: -50.4 percent
Tennis balls
Can of three
1980: $5.24 in 2010 dollars ($1.99* in 1980 dollars)
2010: $2.99*
Change in real dollars: -43 percent
Bananas
1 lb.
1980: $0.95 in 2010 dollars ($0.36 in 1980 dollars)
2010: $0.56
Change in real dollars: -41 percent
Pizza
Large pie
1980: $15.81 in 2010 dollars ($6* in 1980 dollars)
2010: $10.30
Change in real dollars: -34.9 percent
Ground beef
1 lb.
1980: $3.98 in 2010 dollars ($1.51 in 1980 dollars)
2010: $2.72
Change in real dollars: -31.7 percent
Lettuce
1 head
1980: $1.90 in 2010 dollars ($0.72 in 1980 dollars)
2010: $1.35
Change in real dollars: -28.9 percent
Milk
Half gallon
1980: 2.79 in 2010 dollars ($1.06 in 1980 dollars)
2010: $2.01
Change in real dollars: -28.1 percent
Frying chicken
Whole, per lb.
1980: $1.56 in 2010 dollars ($0.59 in 1980 dollars)
2010: $1.15
Change in real dollars: -26 percent
Eggs
1 dozen
1980: $1.98 in 2010 dollars ($0.75 in 1980 dollars)
2010: $1.52
Change in real dollars: -23.1 percent
Orange juice, frozen
Per can
1980: $3.16 in 2010 dollars ($1.20* in 1980 dollars)
2010: $2.50/can*
Change in real dollars: -21 percent
Whiskey
750 ml
1980: $15.79 in 2010 dollars ($5.99* in 1980 dollars)
2010: $12.99**
Change in real dollars: -17.7 percent
Car-tire balancing
Two tires
1980: $24.96 in 2010 dollars ($9.47 in 1980 dollars)
2010: $20.58*
Change in real dollars: -17.5 percent
Household energy consumption
Monthly bill
1980: $209.71 in 2010 dollars ($79.57 in 1980 dollars)
2010: $174.55
Change in real dollars: -16.8 percent
Gasoline
1 gal., unleaded
1980: $3.32 in 2010 dollars, ($1.26 in 1980 dollars)
2010: $2.83
Change in real dollars: -14.8 percent
Potato chips
16-oz. bag
1980: $5.27 in 2010 dollars ($2* in 1980 dollars)
2010: $4.57*
Change in real dollars: -13.3 percent
Ice cream
Half gal.
1980: $4.53 in 2010 dollars ($1.72* in 1980 dollars)
2010: $4.31*
Change in real dollars: -4.9 percent
Movie theater ticket
1 adult
1980: $8.72 in 2010 dollars ($3.31 in 1980 dollars)
2010: $8.82
Change in real dollars: +1.1 percent
Bread
Per loaf
1980: $1.34 in 2010 dollars ($0.51 in 1980 prices)
2010: $1.39
Change in real dollars: +3.4 percent
Home price
1980: $166,946 in 2010 dollars ($64,200* in 1980 dollars)
2010: $172,600*
Change in real dollars: +3.4 percent
Household income
1980: $46,109 in 2009 dollars ($17,710* in 1980 dollars)
2009: $49,777*
Change in real dollars: +8 percent
Man's haircut
1980: $12.15 in 2010 dollars ($4.61 in 1980 dollars)
2010: $13.18
Change in real dollars: +8.5 percent
Phone, residential landline
Monthly bill
1980: $24.46 in 2010 dollars ($9.28 in 1980 dollars)
2010: $26.87
Change in real dollars: +9.9 percent
Apartment rental
1 month
1980: $712 in 2010 dollars ($270 in 1980 dollars)
2010: $815/month
Change in real dollars: +14.5 percent
Dry cleaning
Two-piece suit
1980: $9.25 in 2010 dollars ($3.51 in 1980 dollars)
2010: $10.60
Change in real dollars: +14.6 percent
New car
1980: $19,790 in 2008 dollars ($7,574* in 1980 dollars)
2008: $23,051*
Change in real dollars: +16.5 percent
New York City subway fare
1 ride
1980: $1.32 in 2010 dollars ($0.50* in 1980 dollars)
2010: $2.25/ride*
Change in real dollars: +70.7 percent
Woman's shampoo, cut, and blow-dry
1980: $17.29 in 2010 dollars ($6.56 in 1980 dollars)
2010: $31.95
Change in real dollars: +84.8 percent
Dental care
Cleaning and inspection
1980: $53.61 in 2010 dollars, ($20.34 in 1980 dollars)
2010: $108.86*
Change in real dollars: +103.1 percent
Doctor's visit
1980: $41.27 in 2010 dollars ($15.66 in 1980 dollars)
2010: $89.63
Change in real dollars: +117.2 percent
College tuition
Annual tuition and room and board
1980: $9,142 in 2008 dollars ($3,499* in 1980 dollars)
2008: $20,435/year*
Change in real dollars: +123.5 percent
National health expenditures
Dollars spent per capita
1980: $2,874 in 2008 dollars ($1,100 per capita* in 1980 dollars)
2008: $7,681 per capita*
Change in real dollars: +167.2 percent
Cigarettes
Carton (10 packs)
1980: $14.02 in 2010 dollars ($5.32 in 1980 dollars)
2010: $55.10*
Change in real dollars: +293 percent
