Purchasing power increased by 3.45% in 1927 compared to 1926. On average, you would have to spend 3.45% less money in 1927 than in 1926 for the same item. This is an example of deflation.
In other words, AU$1 in 1926 is equivalent in purchasing power to about AU$0.97 in 1927.
The 1926 inflation rate was 3.57%. The inflation rate in 1927 was -3.45%. The 1927 inflation rate is lower compared to the average inflation rate of 4.12% per year between 1927 and 2019.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1927 was 2.80. It was 2.90 in the previous year, 1926. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation. Because the 1927 CPI is less than 1926 CPI, negative inflation (also known as deflation) has occurred.
|Average inflation rate||-3.45%|
|Converted amount (AU$1 base)||AU$0.97|
|Price difference (AU$1 base)||AU$-0.03|
|CPI in 1926||2.900|
|CPI in 1927||2.800|
|Inflation in 1926||3.57%|
|Inflation in 1927||-3.45%|
This inflation calculator uses the following inflation rate formula:
Then plug in historical CPI values. The Australian CPI was 2.9 in the year 1926 and 2.8 in 1927:
AU$1 in 1926 has the same "purchasing power" or "buying power" as AU$0.97 in 1927.
To get the total inflation rate for the 1 years between 1926 and 1927, we use the following formula:
Plugging in the values to this equation, we get:
Politics and news often influence economic performance. Here's what was happening at the time:
Raw data for these calculations comes from the government of Australia's annual (CPI) as provided by the Reserve Bank of Australia. The consumer price index was established in 1922 and is tracked by Australian Bureau of Statistics (ABS).
You may use the following MLA citation for this page: “Inflation Rate in 1927 | Australia Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 25 Apr. 2019, https://www.officialdata.org/Australia-inflation-rate-in-1927.
Special thanks to QuickChart for providing downloadable chart images.
in2013dollars.com is a reference website maintained by the Official Data Foundation.