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# \$1 in 1975 → \$0.75 in 1973

### Australian Inflation Rate, \$1 in 1975 to 1973

According to the Bureau of Statistics consumer price index, prices in 1973 are 25% lower than average prices since 1975. The Australian dollar experienced an average inflation rate of 15.47% per year during this period, meaning the real value of a dollar decreased.

In other words, \$1 in 1975 is equivalent in purchasing power to about \$0.75 in 1973, a difference of \$-0.25 over 2 years.

The 1973 inflation rate was 9.09%. The inflation rate in 1975 was 15.11%. The 1975 inflation rate is higher compared to the average inflation rate of 4.52% per year between 1975 and 2020.

 Cumulative price change -25.00% Average inflation rate 15.47% Converted amount (\$1 base) \$0.75 Price difference (\$1 base) \$-0.25 CPI in 1975 16.000 CPI in 1973 12.000 Inflation in 1973 9.09% Inflation in 1975 15.11%

AUD Inflation since 1922
Annual Rate, the Bureau of Statistics CPI

### Buying power of \$1 in 1973

This chart shows a calculation of buying power equivalence for \$1 in 1973 (price index tracking began in 1922).

For example, if you started with \$1, you would need to end with \$0.75 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.75 over time, that means that the "real value" of a single Australian dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1973 dollars, the chart below shows how \$1 buys less over the past 2 years.

According to the Bureau of Statistics, each of these AUD amounts below is equal in terms of what it could buy at the time:

Year Dollar Value Inflation Rate
1973 \$1.00 9.09%
1974 \$1.16 15.83%
1975 \$1.33 15.11%
1976 \$1.51 13.13%
1977 \$1.69 12.15%
1978 \$1.83 7.88%
1979 \$1.99 9.13%
1980 \$2.20 10.46%
1981 \$2.41 9.47%
1982 \$2.68 11.07%
1983 \$2.95 10.28%
1984 \$3.07 3.95%
1985 \$3.27 6.52%
1986 \$3.57 9.18%
1987 \$3.87 8.41%
1988 \$4.15 7.33%
1989 \$4.46 7.43%
1990 \$4.79 7.48%
1991 \$4.94 3.13%
1992 \$4.99 1.01%
1993 \$5.08 1.67%
1994 \$5.18 1.97%
1995 \$5.42 4.67%
1996 \$5.56 2.62%
1997 \$5.58 0.30%
1998 \$5.62 0.75%
1999 \$5.70 1.48%
2000 \$5.96 4.53%
2001 \$6.22 4.34%
2002 \$6.41 3.08%
2003 \$6.58 2.73%
2004 \$6.73 2.28%
2005 \$6.92 2.72%
2006 \$7.16 3.49%
2007 \$7.33 2.33%
2008 \$7.65 4.44%
2009 \$7.78 1.74%
2010 \$8.01 2.89%
2011 \$8.28 3.33%
2012 \$8.42 1.71%
2013 \$8.63 2.48%
2014 \$8.84 2.51%
2015 \$8.98 1.51%
2016 \$9.09 1.30%
2017 \$9.27 1.92%
2018 \$9.38 1.26%
2019 \$9.56 1.90%
2020 \$9.74 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

### How to Calculate Inflation Rate for \$1, 1973 to 1975

This inflation calculator uses the following inflation rate formula:

CPI in 1973CPI in 1975
×
1975 AUD value
=
1973 AUD value

Then plug in historical CPI values. The Australian CPI was 16 in the year 1975 and 12 in 1973:

1216
×
\$1
=
\$0.75

\$1 in 1975 has the same "purchasing power" or "buying power" as \$0.75 in 1973.

To get the total inflation rate for the 2 years between 1973 and 1975, we use the following formula:

CPI in 1973 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

12 - 1616
×
100
=
-25%

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

• Margaret Thatcher becomes leader of the British Conservative Party, after defeating Edward Heath.
• Ethiopia abrogates its 3,000-year-old monarchy.
• Bill Gates and Paul Allen found Microsoft.
• The US signals the beginning of the end of its involvement Vietnam, after it begins to evacuate its citizens from Saigon.
• Gough Whitlam is removed by Governor General Sir John Kerr: the first time an elected Prime Minister had been deposed in 200 years (Australia).

### 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: “\$1 in 1975 → 1973 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 20 Jan. 2020, https://www.officialdata.org/1975-AUD-in-1973?amount=1.