If you think the inflation that’s happened in the past few years is the worst the country’s ever seen, you probably weren’t alive during the stagflation of the 1970s. According to NPR, prices started to rise in the middle of the 60s, mainly due to government spending on the Vietnam War and social programs. The cost of living in 1970 was already hard on families because of those price increases, but the situation continued to worsen as the decade wore on due to oil shocks and a shaky economy.
In 1970, inflation reached 5.5% according to CEPR. It continued to trend upward, reaching a peak of 14% in 1980. During the 70s, Americans also had to contend with two back-to-back recessions. Let’s dive deeper into the cost of living in 1970 to get some more historical perspective on inflation.
The Cost of Living in 1970
To get an idea of the cost of living in 1970, it helps to take a look at the prices of common household staples. That year, a gallon of gas cost $0.36, a loaf of bread was $0.16, and a new house could be purchased for $23,400. While those prices may sound enviable, remember that incomes were far lower back then.
According to The People History, the average income was just $9,350 per year, and minimum wage was a meager $1.45 per hour. At that rate, you’d need to work for nearly an hour just to afford a single jar of Miracle Whip! Check out the cost of an average basket of groceries in the 70s below.
Cost of Groceries in the 1970s
During the 70s, food inflation averaged around 8% per year. However, in 1973 alone, food prices rose a whopping 14.5%. That’s higher than the peak of food inflation we experienced in 2022. Plus, grocery prices are back to being pretty stable now, whereas food inflation dragged on throughout the entire decade in the 70s. Could you imagine the impact that would have on your wallet?
To get a better idea of the cost of groceries back then, take a look at some of the average prices (gathered from The People History) compared to today.
Item | 1970s | 2024 |
| Sirloin Steak | $1.19/lb | $13.69/lb |
| Tomatoes | $0.19/lb | $2.13/lb |
| Pork Chops | $0.59/lb | $4.23/lb |
| Ham | $2.29/lb | $4.76/lb |
| Dozen Eggs | $0.25 | $2.52 |
| Butter | $1.33/lb | $4.65/lb |
| Can of Tuna | $0.29 | $1.20 |
| Loaf of Bread | $0.25 | $2.00 |
| Head of Lettuce | $0.10 | $1.44 |
| Potatoes | $0.09/lb | $0.88/lb |
| Sugar | $0.08/lb | $0.97/lb |
| Bacon | $1.29/lb | $6.61/lb |
| Potato Chips | $0.89 | $6.40 |
| Whole Chicken | $0.98/lb | $1.98/lb |
Cost of Major Purchases in the 1970s
Food wasn’t the only rising cost that families had to worry about. According to the USDA, housing prices increased over 10% in 1974, 1975, and 1979, which squeezed household budgets. The median monthly rent cost was $108, a whopping 65% higher than in the previous decade.
The cost of living in 1970 was also worsened by high interest rates. At the start of the decade, the average mortgage rate was 7.3%, which climbed to 12.9% by the end of the 70s. This made it harder for families to buy homes, especially those at the lower end of the income scale.
Item | 1970s |
| Monthly Rent | $108 |
| New Car | $3,900 |
| New House | $23,400 |
| Gas | $0.36 per gallon |
| Refrigerator | $704.95 |
Cost of Entertainment in the 1970s
Although the cost of living in 1970 hit household budgets hard, luckily many families still had a bit of disposable income left over. On average, Americans spent about $700 per year on entertainment during the 70s. Watching TV and going to the movies were both popular hobbies. It’s easy to see why since hits like The Godfather and Chinatown coming out during this time. Innovations like pocket calculators and Pong, the first successful arcade game, were also released at the beginning of the 70s.
Additionally, airfare prices started to fall, which allowed wealthier Americans to take more international vacations. But for the most part, Americans enjoyed simple pastimes at home such as reading, playing cards, and entertaining friends, with the occasional trip to the movies or dinner out.
Item | 1970s |
| Color TV | $739.95 |
| Movie Ticket | $1.55 |
| Flight From NY To London | $550 |
| Car 8-Track Stereo Tape Player | $38.99 |
| King-Sized Bean Bag Chair | $19.99 |
What do you think about the cost of living in 1970 and how it compares to today? Share your thoughts in the comments.
Read More
What Was The Cost of Living in 1962?
What Was The Cost of Living in 1955?
Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.