As simple as: sorted(dict1, key=dict1.get)

Well, it is actually possible to do a "sort by dictionary values". Recently I had to do that in a Code Golf (Stack Overflow question Code golf: Word frequency chart). Abridged, the problem was of the kind: given a text, count how often each word is encountered and display a list of the top words, sorted by decreasing frequency.

If you construct a dictionary with the words as keys and the number of occurrences of each word as value, simplified here as:

from collections import defaultdict
d = defaultdict(int)
for w in text.split():
    d[w] += 1

then you can get a list of the words, ordered by frequency of use with sorted(d, key=d.get) - the sort iterates over the dictionary keys, using the number of word occurrences as a sort key .

for w in sorted(d, key=d.get, reverse=True):
    print(w, d[w])

I am writing this detailed explanation to illustrate what people often mean by "I can easily sort a dictionary by key, but how do I sort by value" - and I think the original post was trying to address such an issue. And the solution is to do sort of list of the keys, based on the values, as shown above.

You could use:

sorted(d.items(), key=lambda x: x[1])

This will sort the dictionary by the values of each entry within the dictionary from smallest to largest.

To sort it in descending order just add reverse=True:

sorted(d.items(), key=lambda x: x[1], reverse=True)

Input:

d = {'one':1,'three':3,'five':5,'two':2,'four':4}
a = sorted(d.items(), key=lambda x: x[1])    
print(a)

Output:

[('one', 1), ('two', 2), ('three', 3), ('four', 4), ('five', 5)]

Dicts can't be sorted, but you can build a sorted list from them.

A sorted list of dict values:

sorted(d.values())

A list of (key, value) pairs, sorted by value:

from operator import itemgetter
sorted(d.items(), key=itemgetter(1))

In recent Python 2.7, we have the new OrderedDict type, which remembers the order in which the items were added.

>>> d = {"third": 3, "first": 1, "fourth": 4, "second": 2}

>>> for k, v in d.items():
...     print "%s: %s" % (k, v)
...
second: 2
fourth: 4
third: 3
first: 1

>>> d
{'second': 2, 'fourth': 4, 'third': 3, 'first': 1}

To make a new ordered dictionary from the original, sorting by the values:

>>> from collections import OrderedDict
>>> d_sorted_by_value = OrderedDict(sorted(d.items(), key=lambda x: x[1]))

The OrderedDict behaves like a normal dict:

>>> for k, v in d_sorted_by_value.items():
...     print "%s: %s" % (k, v)
...
first: 1
second: 2
third: 3
fourth: 4

>>> d_sorted_by_value
OrderedDict([('first': 1), ('second': 2), ('third': 3), ('fourth': 4)])

UPDATE: 5 DECEMBER 2015 using Python 3.5

Whilst I found the accepted answer useful, I was also surprised that it hasn't been updated to reference OrderedDict from the standard library collections module as a viable, modern alternative - designed to solve exactly this type of problem.

from operator import itemgetter
from collections import OrderedDict

x = {1: 2, 3: 4, 4: 3, 2: 1, 0: 0}
sorted_x = OrderedDict(sorted(x.items(), key=itemgetter(1)))
# OrderedDict([(0, 0), (2, 1), (1, 2), (4, 3), (3, 4)])

The official OrderedDict documentation offers a very similar example too, but using a lambda for the sort function:

# regular unsorted dictionary
d = {'banana': 3, 'apple':4, 'pear': 1, 'orange': 2}

# dictionary sorted by value
OrderedDict(sorted(d.items(), key=lambda t: t[1]))
# OrderedDict([('pear', 1), ('orange', 2), ('banana', 3), ('apple', 4)])

Pretty much the same as Hank Gay's answer:

sorted([(value,key) for (key,value) in mydict.items()])

Or optimized slightly as suggested by John Fouhy:

sorted((value,key) for (key,value) in mydict.items())

As of Python 3.6 the built-in dict will be ordered

Good news, so the OP's original use case of mapping pairs retrieved from a database with unique string ids as keys and numeric values as values into a built-in Python v3.6+ dict, should now respect the insert order.

If say the resulting two column table expressions from a database query like:

SELECT a_key, a_value FROM a_table ORDER BY a_value;

would be stored in two Python tuples, k_seq and v_seq (aligned by numerical index and with the same length of course), then:

k_seq = ('foo', 'bar', 'baz')
v_seq = (0, 1, 42)
ordered_map = dict(zip(k_seq, v_seq))

Allow to output later as:

for k, v in ordered_map.items():
    print(k, v)

yielding in this case (for the new Python 3.6+ built-in dict!):

foo 0
bar 1
baz 42

in the same ordering per value of v.

Where in the Python 3.5 install on my machine it currently yields:

bar 1
foo 0
baz 42