# Australia Inflation Calculator

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## Why a dollar today is worth only 2% of a dollar in 1923

Updated: May 12, 2020

According to the Bureau of Statistics consumer price index, today's prices in 2020 are 4,075.69% higher than average prices since 1923. This means that a dollar today only buys 2.39% of what it could buy in 1923. The Australian dollar experienced an average inflation rate of 3.92% per year during this period, causing the real value of a dollar to decrease.

In other words, \$100 in 1923 is equivalent in purchasing power to about \$4,175.69 in 2020, a difference of \$4,075.69 over 97 years.

The 1923 inflation rate was 0.00%. The current year-over-year inflation rate (2019 to 2020) is now 1.90%1. If this number holds, \$100 today will be equivalent in buying power to \$101.90 next year.

 Cumulative price change 4,075.69% Average inflation rate 3.92% Converted amount (\$100 base) \$4,175.69 Price difference (\$100 base) \$4,075.69 CPI in 1923 2.800 CPI in 2020 116.919 Inflation in 1923 0.00% Inflation in 2020 1.90%

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

## Buying power of \$100 in 1923

This chart shows a calculation of buying power equivalence for \$100 in 1923 (price index tracking began in 1922).

For example, if you started with \$100, you would need to end with \$4,175.69 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$100 is equivalent to \$4,175.69 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 1923 dollars, the chart below shows how \$100 is worth less over 97 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:

Dollar inflation: 1923-2020
Year Dollar Value Inflation Rate
1923 \$100.00 -
1924 \$100.00 0.00%
1925 \$100.00 0.00%
1926 \$103.57 3.57%
1927 \$100.00 -3.45%
1928 \$103.57 3.57%
1929 \$103.57 0.00%
1930 \$96.43 -6.90%
1931 \$89.29 -7.41%
1932 \$85.71 -4.00%
1933 \$82.14 -4.17%
1934 \$82.14 0.00%
1935 \$85.71 4.35%
1936 \$85.71 0.00%
1937 \$89.29 4.17%
1938 \$92.86 4.00%
1939 \$92.86 0.00%
1940 \$96.43 3.85%
1941 \$100.00 3.70%
1942 \$110.71 10.71%
1943 \$114.29 3.23%
1944 \$114.29 0.00%
1945 \$114.29 0.00%
1946 \$114.29 0.00%
1947 \$121.43 6.25%
1948 \$132.14 8.82%
1949 \$142.86 8.11%
1950 \$157.14 10.00%
1951 \$185.71 18.18%
1952 \$217.86 17.31%
1953 \$228.57 4.92%
1954 \$232.14 1.56%
1955 \$235.71 1.54%
1956 \$250.00 6.06%
1957 \$257.14 2.86%
1958 \$257.14 0.00%
1959 \$264.29 2.78%
1960 \$275.00 4.05%
1961 \$278.57 1.30%
1962 \$278.57 0.00%
1963 \$282.14 1.28%
1964 \$289.29 2.53%
1965 \$300.00 3.70%
1966 \$307.14 2.38%
1967 \$317.86 3.49%
1968 \$328.57 3.37%
1969 \$339.29 3.26%
1970 \$350.00 3.16%
1971 \$371.43 6.12%
1972 \$392.86 5.77%
1973 \$428.57 9.09%
1974 \$496.43 15.83%
1975 \$571.43 15.11%
1976 \$646.43 13.13%
1977 \$725.00 12.15%
1978 \$782.14 7.88%
1979 \$853.57 9.13%
1980 \$942.86 10.46%
1981 \$1,032.14 9.47%
1982 \$1,146.43 11.07%
1983 \$1,264.29 10.28%
1984 \$1,314.29 3.95%
1985 \$1,400.00 6.52%
1986 \$1,528.57 9.18%
1987 \$1,657.14 8.41%
1988 \$1,778.57 7.33%
1989 \$1,910.71 7.43%
1990 \$2,053.57 7.48%
1991 \$2,117.86 3.13%
1992 \$2,139.29 1.01%
1993 \$2,175.00 1.67%
1994 \$2,217.86 1.97%
1995 \$2,321.43 4.67%
1996 \$2,382.14 2.62%
1997 \$2,389.29 0.30%
1998 \$2,407.14 0.75%
1999 \$2,442.86 1.48%
2000 \$2,553.57 4.53%
2001 \$2,664.29 4.34%
2002 \$2,746.43 3.08%
2003 \$2,821.43 2.73%
2004 \$2,885.71 2.28%
2005 \$2,964.29 2.72%
2006 \$3,067.86 3.49%
2007 \$3,139.29 2.33%
2008 \$3,278.57 4.44%
2009 \$3,335.71 1.74%
2010 \$3,432.14 2.89%
2011 \$3,546.43 3.33%
2012 \$3,607.14 1.71%
2013 \$3,696.43 2.48%
2014 \$3,789.29 2.51%
2015 \$3,846.43 1.51%
2016 \$3,896.43 1.30%
2017 \$3,971.43 1.92%
2018 \$4,021.43 1.26%
2019 \$4,097.84 1.90%
2020 \$4,175.69 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 91 more rows

This conversion table shows various other 1923 amounts in today's dollars, based on the 4,075.69% change in prices:

Conversion Table: Value of a dollar today
Initial value Equivalent value
\$1 dollar in 1923 \$41.76 dollars today
\$5 dollars in 1923 \$208.78 dollars today
\$10 dollars in 1923 \$417.57 dollars today
\$50 dollars in 1923 \$2,087.85 dollars today
\$100 dollars in 1923 \$4,175.69 dollars today
\$500 dollars in 1923 \$20,878.47 dollars today
\$1,000 dollars in 1923 \$41,756.95 dollars today
\$5,000 dollars in 1923 \$208,784.73 dollars today
\$10,000 dollars in 1923 \$417,569.46 dollars today
\$50,000 dollars in 1923 \$2,087,847.30 dollars today
\$100,000 dollars in 1923 \$4,175,694.59 dollars today
\$500,000 dollars in 1923 \$20,878,472.96 dollars today
\$1,000,000 dollars in 1923 \$41,756,945.93 dollars today

## How to Calculate Inflation Rate for \$100 since 1923

Our calculations use the following inflation rate formula to calculate the change in value between 1923 and today:

CPI today CPI in 1923
×
1923 AUD value
=
Today's value

Then plug in historical CPI values. The Australian CPI was 2.8 in the year 1923 and 116.91944859999998 in 2020:

116.919448599999982.8
×
\$100
=
\$4,175.69

\$100 in 1923 has the same "purchasing power" or "buying power" as \$4,175.69 in 2020.

To get the total inflation rate for the 97 years between 1923 and 2020, we use the following formula:

CPI in 2020 - CPI in 1923CPI in 1923
×
100
=
Cumulative inflation rate (97 years)

Plugging in the values to this equation, we get:

116.91944859999998 - 2.82.8
×
100
=
4,076%

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

• The inner burial chamber of the Pharaoh Tutankhamun's tomb is opened, leading to the finding of the sarcophagus by Howard Carter.
• The Disney Brothers Cartoon Studio is founded.
• Lenin's "Political Testament" is issued which calls for Stalin's removal.
• In Germany, 5,000 storm troopers demonstrate against the 'November crime', Hitler is arrested after seeking to take advantage of the chaotic conditions.

## 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: “Australia Inflation Calculator: AUD from 1923 to 2020.” Official Inflation Data, Alioth Finance, 28 May. 2020, https://www.officialdata.org/Australia-inflation.