ANNUAL U.S. ECONOMIC SNAPSHOT · 1980s DECADE
The U.S. Economy & Cost of Living in 1989
In 1989, U.S. CPI inflation averaged 4.83%, civilian unemployment stood at 5.26%, and real GDP grew by 3.67%. Due to cumulative inflation since 1989, $100 in 1989 has the same purchasing power as $260.00 in 2025.
1989 CPI Inflation 4.83% CPI: 124.0
$100 in 1989 Worth $260.00 In 2025 dollars
Unemployment 5.26% Civilian U-3
Real GDP Growth 3.67% $5,642B nominal
Median Home Price $120,425 4.17x income
10Y Treasury Yield 8.49% Fed Funds: 9.22%
1989 vs. 2025 U.S. Economic & Cost-of-Living Benchmark Table
| Economic Indicator | In 1989 | In 2025 | Full Series |
|---|---|---|---|
| CPI-U Inflation Rate (Annual %) | 4.83% | 2.63% | History → |
| Purchasing Power of $100 in 2025 USD | $100.00 | $260.00 | History → |
| Civilian Unemployment Rate (%) | 5.26% | 4.26% | History → |
| Real GDP Growth Rate (% YoY) | 3.67% | 2.34% | History → |
| Nominal U.S. GDP ($ Billions) | $5,641.6B | $30,861.3B | History → |
| Real GDP Per Capita (Chained 2017 USD) | $39,892 | $70,020 | History → |
| Median Home Sales Price (Nominal USD) | $120,425 | $415,400 | History → |
| Median Home Price-to-Income Ratio | 4.17x | 4.75x | History → |
| Mortgage Origination Rate (FHFA, %) | - | 6.3% | History → |
| 10-Year U.S. Treasury Yield (%) | 8.49% | 4.29% | History → |
| Federal Minimum Wage (Nominal vs 2025 Real) | $3.35 ($8.70 in 2025 USD) | $7.25 | History → |
| Regular Gasoline Price (USD / Gallon) | $1.02 | $3.26 | History → |
| Federal Public Debt (% of GDP) | 50.3% | 120.7% | History → |
| Federal Budget Surplus / Deficit (% of GDP) | -2.71% | -5.77% | History → |
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