The consumer price index (CPI) in 1940 was 2.7. the Bureau of Statistics uses this CPI value to track inflation on a monthly basis.

According to the Bureau of Statistics consumer price index, the dollar experienced an average inflation rate of 4.88% per year. Prices in 2018 are 4024.8% higher than prices in 1940.

In other words, AU$1 in the year 1940 is equivalent in purchasing power to AU$41.25 in 2018, a difference of AU$40.25 over 78 years.

The
current inflation rate
in 2018 is 1.80%^{1}. If this number holds, AU$1 today will be equivalent to AU$1.02 next year.

Cumulative price change | 4024.79% |

Average inflation rate | 4.88% |

Price difference (AU$1 base) | AU$40.25 |

CPI in 1940 | 2.7 |

CPI in 2018 | 111.3692 |

CPI in 2018 / CPI in 1940 * 1940 AUD value = 2018 AUD value

Then plug in historical CPI values. The Australian CPI was 2.7 in the year 1940 and 111.3692 in 2018:

111.3692 / 2.7 * AU$1 =

AU$1 in 1940 has the same "purchasing power" as AU$41.25 in 2018.

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 1940 | Australia Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 19 Jan. 2018, http://www.in2013dollars.com/Australia-inflation-rate-in-1940.