Inflation in 1942 and its effect on dollar value
Purchasing power decreased by 10.71% in 1942 compared to 1941. On average, you would have to spend 10.71% more money in 1942 than in 1941 for the same item.
In other words, $1 in 1941 is equivalent in purchasing power to about $1.11 in 1942.
The 1941 inflation rate was 3.70%. The inflation rate in 1942 was 10.71%. The 1942 inflation rate is higher compared to the average inflation rate of 4.76% per year between 1942 and 2020.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1942 was 3.10. It was 2.80 in the previous year, 1941. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.
⌃
| Average inflation rate | 10.71% |
| Converted amount ($1 base) | $1.11 |
| Price difference ($1 base) | $0.11 |
| CPI in 1941 | 2.800 |
| CPI in 1942 | 3.100 |
| Inflation in 1941 | 3.70% |
| Inflation in 1942 | 10.71% |
How to Calculate Inflation Rate for $1, 1941 to 1942
Our calculations use the following inflation rate formula to calculate the change in value between 1941 and 1942:
CPI in 1942
CPI in 1941
×
1941 AUD value
=
1942 AUD value
Then plug in historical CPI values. The Australian CPI was 2.8 in the year 1941 and 3.1 in 1942:
3.12.8
×
$1
=
$1.11
$1 in 1941 has the same "purchasing power" or "buying power" as $1.11 in 1942.
To get the total inflation rate for the 1 years between 1941 and 1942, we use the following formula:
CPI in 1942 - CPI in 1941CPI in 1941
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
3.1 - 2.82.8
×
100
=
11%
News headlines from 1941
Politics and news often influence economic performance. Here's what was happening at the time:
- 6,000 Jews are exterminated in the Bucharest pogrom in Romania.
- Kuomintang troops open fire at communist forces, leading to the resumption of the Chinese civil war.
- The British battle cruiser the HMS Hood is sunk by the German Battleship Bismarck, leading to 1,416 dead and only 3 survivors.
- Germany, Italy, and Romania declare war on the Soviet Union.
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 1942 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 22 Sep. 2020, https://www.officialdata.org/Australia-inflation-rate-in-1942.
Special thanks to QuickChart for their chart image API, which is used for chart downloads.
in2013dollars.com is a reference website maintained by the Official Data Foundation.
| Average inflation rate | 10.71% |
| Converted amount ($1 base) | $1.11 |
| Price difference ($1 base) | $0.11 |
| CPI in 1941 | 2.800 |
| CPI in 1942 | 3.100 |
| Inflation in 1941 | 3.70% |
| Inflation in 1942 | 10.71% |