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# Australian inflation rate in 1926: 3.57%

### Inflation in 1926 and Its Effect on Dollar Value

Purchasing power decreased by 3.57% in 1926 compared to 1925. On average, you would have to spend 3.57% more money in 1926 than in 1925 for the same item.

In other words, \$1 in 1925 is equivalent in purchasing power to about \$1.04 in 1926.

The 1925 inflation rate was 0.00%. The inflation rate in 1926 was 3.57%. The 1926 inflation rate is lower compared to the average inflation rate of 4.01% per year between 1926 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1926 was 2.90. It was 2.80 in the previous year, 1925. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.

 Average inflation rate 3.57% Converted amount (\$1 base) \$1.04 Price difference (\$1 base) \$0.04 CPI in 1925 2.800 CPI in 1926 2.900 Inflation in 1925 0.00% Inflation in 1926 3.57%

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

### How to Calculate Inflation Rate for \$1, 1925 to 1926

This inflation calculator uses the following inflation rate formula:

CPI in 1926CPI in 1925
×
1925 AUD value
=
1926 AUD value

Then plug in historical CPI values. The Australian CPI was 2.8 in the year 1925 and 2.9 in 1926:

2.92.8
×
\$1
=
\$1.04

\$1 in 1925 has the same "purchasing power" or "buying power" as \$1.04 in 1926.

To get the total inflation rate for the 1 years between 1925 and 1926, we use the following formula:

CPI in 1926 - CPI in 1925CPI in 1925
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

2.9 - 2.82.8
×
100
=
4%

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

• The Ku Klux Klan's first national march takes place in Washington.
• The last Qajar Shah of Iran is deposed with Reza Shah Pahlavi taking over.
• Scopes monkey trial ends in Dayton, Tennessee, finding John T. Scopes guilty of teaching evolution.

### 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 1926 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Jan. 2020, https://www.officialdata.org/Australia-inflation-rate-in-1926.