Australian inflation rate in 1971: 6.12%

Australia Inflation Calculator

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Inflation in 1971 and Its Effect on Dollar Value

Purchasing power decreased by 6.12% in 1971 compared to the previous year, 1970. On average, you would have to spend 6.12% more money in 1971 than in 1970 for the same item.

In other words, AU$1 in 1970 is equivalent in purchasing power to AU$1.06 in 1971.

The 1970 inflation rate was 3.16%. The inflation rate in 1971 was 6.12%. The 1971 inflation rate is higher compared to the average inflation rate of 5.18% per year between 1971 and 2018.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1971 was 10.4. It was 9.8 in the previous year, 1970. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.


Inflation from 1970 to 1971
Average inflation rate 6.12%
Converted amount (AU$1 base) AU$1.06
Price difference (AU$1 base) AU$0.06
CPI in 1970 9.800
CPI in 1971 10.400
Inflation in 1970 3.16%
Inflation in 1971 6.12%


AUD inflation chart from 1922 to 2017


How to Calculate Inflation Rate for AU$1, 1970 to 1971

This inflation calculator uses the following inflation rate formula:

CPI in 1971CPI in 1970
×
1970 AUD value
=
1971 AUD value

Then plug in historical CPI values. The Australian CPI was 9.8 in the year 1970 and 10.4 in 1971:

10.49.8
×
AU$1
=
AU$1.06

AU$1 in 1970 has the same "purchasing power" or "buying power" as AU$1.06 in 1971.

To get the total inflation rate for the 1 years between 1970 and 1971, we use the following formula:

CPI in 1971 - CPI in 1970CPI in 1970
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

10.4 - 9.89.8
×
100
=
6%

News headlines from 1970

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

  • 1/1/1970 established as Epoch time for UNIX systems.
  • Rhodesia declares independence and sets up a republican government.
  • Aswan Dam opens in Egypt to prevent flooding of the Nile River.
  • A Palestinian terrorist organization, hijacks three aircraft, in an incident that is later known as Black September.

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 1971 | Australia Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 19 Dec. 2018, https://www.officialdata.org/Australia-inflation-rate-in-1971.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


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