AU\$

# Australian inflation rate in 1931: -7.41%

### Inflation in 1931 and Its Effect on Dollar Value

Purchasing power increased by 7.41% in 1931 compared to 1930. On average, you would have to spend 7.41% less money in 1931 than in 1930 for the same item. This is an example of deflation.

In other words, AU\$1 in 1930 is equivalent in purchasing power to about AU\$0.93 in 1931.

The 1930 inflation rate was -6.90%. The inflation rate in 1931 was -7.41%. The 1931 inflation rate is lower compared to the average inflation rate of 4.44% per year between 1931 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1931 was 2.50. It was 2.70 in the previous year, 1930. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation. Because the 1931 CPI is less than 1930 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -7.41% Converted amount (AU\$1 base) AU\$0.93 Price difference (AU\$1 base) AU\$-0.07 CPI in 1930 2.700 CPI in 1931 2.500 Inflation in 1930 -6.90% Inflation in 1931 -7.41%

### How to Calculate Inflation Rate for AU\$1, 1930 to 1931

This inflation calculator uses the following inflation rate formula:

CPI in 1931CPI in 1930
×
1930 AUD value
=
1931 AUD value

Then plug in historical CPI values. The Australian CPI was 2.7 in the year 1930 and 2.5 in 1931:

2.52.7
×
AU\$1
=
AU\$0.93

AU\$1 in 1930 has the same "purchasing power" or "buying power" as AU\$0.93 in 1931.

To get the total inflation rate for the 1 years between 1930 and 1931, we use the following formula:

CPI in 1931 - CPI in 1930CPI in 1930
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

2.5 - 2.72.7
×
100
=
-7%

Politics and news often influence economic performance. Here's what was happening at the time:

• Mohandas Gandhi protests British salt tax by a 200-mile-long walk.
• Clyde Tombaugh discovers Pluto.
• Lawrence Hyland discovers the first radar by accident.
• Roald Amundsen's leads the first expedition to reach the South Pole.
• American explorer Hiram Bingham discovers Machu Picchu.

### Data Source & Citation

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 1931 | Australia Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 19 Sep. 2019, https://www.officialdata.org/Australia-inflation-rate-in-1931.