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# Australian inflation rate in 1959: 2.78%

### Inflation in 1959 and Its Effect on Dollar Value

Purchasing power decreased by 2.78% in 1959 compared to 1958. On average, you would have to spend 2.78% more money in 1959 than in 1958 for the same item.

In other words, \$1 in 1958 is equivalent in purchasing power to about \$1.03 in 1959.

The 1958 inflation rate was 0.00%. The inflation rate in 1959 was 2.78%. The 1959 inflation rate is lower compared to the average inflation rate of 4.63% per year between 1959 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1959 was 7.40. It was 7.20 in the previous year, 1958. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.

 Average inflation rate 2.78% Converted amount (\$1 base) \$1.03 Price difference (\$1 base) \$0.03 CPI in 1958 7.200 CPI in 1959 7.400 Inflation in 1958 0.00% Inflation in 1959 2.78%

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

### How to Calculate Inflation Rate for \$1, 1958 to 1959

This inflation calculator uses the following inflation rate formula:

CPI in 1959CPI in 1958
×
1958 AUD value
=
1959 AUD value

Then plug in historical CPI values. The Australian CPI was 7.2 in the year 1958 and 7.4 in 1959:

7.47.2
×
\$1
=
\$1.03

\$1 in 1958 has the same "purchasing power" or "buying power" as \$1.03 in 1959.

To get the total inflation rate for the 1 years between 1958 and 1959, we use the following formula:

CPI in 1959 - CPI in 1958CPI in 1958
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

7.4 - 7.27.2
×
100
=
3%

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

• The European Economic Community is founded.
• Nikita Khrushchev is named First Secretary of the Communist Party and Soviet Premier.
• The "Great leap forward" movement in China is started by Mao Zedong.
• Fulgencio Batista, the Cuban dictator, announces to his Cabinet that he is fleeing the country.

### 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 1959 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Jan. 2020, https://www.officialdata.org/Australia-inflation-rate-in-1959.