Bacon Prices By Year And Adjusted For Inflation

Bacon is staple food for many who pair it with eggs for breakfast. The average American consumes 18 pounds of bacon annually, according to the Foundation for Economic Education (FEE).

The average price for a pound of bacon was $7.61 in October compared to $7.38 in September, according to data published Nov. 10, 2022, by the U.S. Labor Department’s Bureau of Labor Statistics (BLS) shows. Averaging the BLS’s monthly pricing data, the per-pound cost of bacon was $6.64 in 2021 compared to $5.58 in 2020, marking a year-over-year increase of 19%.

As displayed in the table below, the cost of bacon hit one of its peaks in 2014. Bacon prices retreated for a couple of years after, and then trended upward until peaking to its highest price for a calendard year in 2021. The table’s first column shows average annual prices for a pound of bacon while the last column has those prices adjusted for inflation in 2021 dollars.

Inflation Adjusted Coffee Prices (Years 1980-2021)

Category: Bacon (Sliced, Per lb.)

Year Average Bacon Prices by Year* Average Annual CPI for Bacon** Bacon Prices Adjusted for Inflation in 2021 Dollars
1980 $1.46 73.5 $7.00
1981 $1.67 83.3 $7.03
1982 $2.05 102.2 $7.06
1983 $1.94 100.0 $6.82
1984 $1.86 97.9 $6.67
1985 $1.94 101.3 $6.73
1986 $2.08 108.5 $6.74
1987 $2.14 114.6 $6.57
1988 $1.88 100.9 $6.56
1989 $1.77 95.8 $6.48
1990 $2.12 113.4 $6.58
1991 $2.22 119.8 $6.51
1992 $1.92 104.6 $6.43
1993 $1.93 110.8 $6.12
1994 $1.99 118.1 $5.92
1995 $1.99 120.0 $5.81
1996 $2.47 148.9 $5.84
1997 $2.68 164.0 $5.75
1998 $2.54 152.0 $5.88
1999 $2.55 151.5 $5.91
2000 $3.03 177.5 $6.00
2001 $3.25 184.6 $6.19
2002 $3.24 186.2 $6.11
2003 $3.20 196.6 $5.72
2004 $3.38 212.0 $5.60
2005 $3.39 209.8 $5.68
2006 $3.44 213.0 $5.68
2007 $3.66 220.978 $5.81
2008 $3.66 219.349 $5.86
2009 $3.61 215.861 $5.87
2010 $4.11 232.207 $6.21
2011 $4.63 263.405 $6.17
2012 $4.56 267.691 $5.98
2013 $5.29 283.854 $6.54
2014 $5.78 299.687 $6.77
2015 $5.45 280.969 $6.82
2016 $5.42 282.682 $6.74
2017 $5.77 301.979 $6.71
2018 $5.47 296.766 $6.47
2019 $5.61 302.619 $6.52
2020 $5.58 310.531 $6.32
2021 $6.64 351.380 $6.64

*Data Source: U.S. Bureau of Labor Statistics: Annual Average for Bacon, sliced, per lb. (453.6 gm) in U.S. city average, average price, not seasonally adjusted. CPI Average Price Data.

**Data Source: U.S. Bureau of Labor Statistics: Annual Average for Bacon and related products in U.S. city average, all urban consumers, not seasonally adjusted. CPI-All Urban Consumers.

Bacon in the CPI

Bacon is one of many food items the BLS scrutinizes for pricing changes. The BLS uses it along with many other prices for goods and services to produce the closely-watched Consumer Price Index (CPI) and calculate the overall inflation rate.

Bacon Prices and Overall Inflation

Bacon, like any other single consumable item, does not bear much of any importance when compared to the big, all-encompassing CPI which encapsulates the entire food grouping along with cost changes for things like energy, health care, shelter, cars and trucks.

Some inflation comparisons are still interesting.

For example, taking the pricing data above for bacon, its price per pound increased from an average of $1.46 in 1980 to $6.64 in 2021, for a whopping 354.8% increase in 41 years.

Using these same data points in this site’s Inflation Calculator to see how they compare to overall inflation, which encompasses thousands of items — not just bacon, the calculator shows $1.46 for 1980 adjusts to $4.80 in 2021, for a 228.8% increase.

During the 41 years, the rate of increase for bacon prices ran quicker than overall inflation.

How to Adjust Bacon Prices for Inflation

In calculating bacon prices to adjust for inflation, we’ll use an example of their average price in 1980 and adjust that to 2021 dollars. First, consider these facts from the table above:

  • The average annual price for Bacon in 1980 was $1.46 per pound.
  • The annual average CPI for Bacon in 1980 was 73.5.
  • The annual average CPI for Bacon in 2021 was 351.380.

The following formula shows how to adjust Bacon prices for inflation:

1980 Bacon Price x (2021 CPI for Bacon / 1980 CPI for Bacon) = Adjusted Bacon Price in 2021 Dollars

Using the actual numbers:

$1.46 x (351.380/73.5) = $7.00