# Australian inflation rate in 1927: -3.45%

\$

## Inflation in 1927 and its effect on dollar value

\$1 in 1926 is equivalent in purchasing power to about \$0.97 in 1927. The dollar had an average deflation rate of -3.45% per year since 1926, producing a cumulative price change of -3.45%. Purchasing power increased by 3.45% in 1927 compared to 1926. On average, you would have to spend 3.45% less money in 1927 than in 1926 for the same item. This is an example of deflation.

This means that prices in 1927 are 3.45% lower than average prices since 1926, according to the Bureau of Statistics consumer price index.

The inflation rate in 1926 was 3.57%. The inflation rate in 1927 was -3.45%. The 1927 inflation rate is lower compared to the average inflation rate of 4.03% per year between 1927 and 2022.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1927 was 2.80. It was 2.90 in the previous year, 1926. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation. Because the 1927 CPI is less than 1926 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -3.45% Converted amount (\$1 base) \$0.97 Price difference (\$1 base) \$-0.03 CPI in 1926 2.900 CPI in 1927 2.800 Inflation in 1926 3.57% Inflation in 1927 -3.45% \$1 in 1926 \$0.97 in 1927

Recent AUD inflation
Annual Rate, the Bureau of Statistics CPI

## How to calculate inflation rate for \$1, 1926 to 1927

Our calculations use the following inflation rate formula to calculate the change in value between 1926 and 1927:

CPI in 1927 CPI in 1926
×
1926 AUD value
=
1927 AUD value

Then plug in historical CPI values. The Australian CPI was 2.9 in the year 1926 and 2.8 in 1927:

2.82.9
×
\$1
=
\$0.97

\$1 in 1926 has the same "purchasing power" or "buying power" as \$0.97 in 1927.

To get the total inflation rate for the 1 years between 1926 and 1927, we use the following formula:

CPI in 1927 - CPI in 1926CPI in 1926
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

2.8 - 2.92.9
×
100
=
-3%

## 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 1927 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 29 Jun. 2022, https://www.officialdata.org/Australia-inflation-rate-in-1927.

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