Inflation in 1932 and its effect on dollar value
$1 in 1931 is equivalent in purchasing power to about $0.96 in 1932. The dollar had an average deflation rate of -4.00% per year since 1931, producing a cumulative price change of -4.00%. Purchasing power increased by 4.00% in 1932 compared to 1931. On average, you would have to spend 4.00% less money in 1932 than in 1931 for the same item. This is an example of deflation.
This means that prices in 1932 are 4% lower than average prices since 1931, according to the Bureau of Statistics consumer price index.
The inflation rate in 1931 was -7.41%. The inflation rate in 1932 was -4.00%. The 1932 inflation rate is lower compared to the average inflation rate of 4.48% per year between 1932 and 2024.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1932 was 2.40. It was 2.50 in the previous year, 1931. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation. Because the 1932 CPI is less than 1931 CPI, negative inflation (also known as deflation) has occurred.
⌃
| Average inflation rate | -4.00% |
| Converted amount $1 base | $0.96 |
| Price difference $1 base | $-0.04 |
| CPI in 1931 | 2.500 |
| CPI in 1932 | 2.400 |
| Inflation in 1931 | -7.41% |
| Inflation in 1932 | -4.00% |
| $1 in 1931 | $0.96 in 1932 |
How to calculate inflation rate for $1, 1931 to 1932
Our calculations use the following inflation rate formula to calculate the change in value between 1931 and 1932:
CPI in 1932 CPI in 1931
×
1931 AUD value
=
1932 AUD value
Then plug in historical CPI values. The Australian CPI was 2.5 in the year 1931 and 2.4 in 1932:
2.42.5
×
$1
=
$0.96
$1 in 1931 has the same "purchasing power" or "buying power" as $0.96 in 1932.
To get the total inflation rate for the 1 years between 1931 and 1932, we use the following formula:
CPI in 1932 - CPI in 1931CPI in 1931
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
2.4 - 2.52.5
×
100
=
-4%
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 1932 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Apr. 2024, https://www.officialdata.org/Australia-inflation-rate-in-1932.
Special thanks to QuickChart for their chart image API, which is used for chart downloads.
in2013dollars.com is a reference website maintained by the Official Data Foundation.
| Average inflation rate | -4.00% |
| Converted amount $1 base | $0.96 |
| Price difference $1 base | $-0.04 |
| CPI in 1931 | 2.500 |
| CPI in 1932 | 2.400 |
| Inflation in 1931 | -7.41% |
| Inflation in 1932 | -4.00% |
| $1 in 1931 | $0.96 in 1932 |