# Australian inflation rate in 1975: 15.11%

\$

## Inflation in 1975 and its effect on dollar value

Purchasing power decreased by 15.11% in 1975 compared to 1974. On average, you would have to spend 15.11% more money in 1975 than in 1974 for the same item.

In other words, \$1 in 1974 is equivalent in purchasing power to about \$1.15 in 1975.

The 1974 inflation rate was 15.83%. The inflation rate in 1975 was 15.11%. The 1975 inflation rate is higher compared to the average inflation rate of 4.52% per year between 1975 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1975 was 16.00. It was 13.90 in the previous year, 1974. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.

 Average inflation rate 15.11% Converted amount (\$1 base) \$1.15 Price difference (\$1 base) \$0.15 CPI in 1974 13.900 CPI in 1975 16.000 Inflation in 1974 15.83% Inflation in 1975 15.11%

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

## How to Calculate Inflation Rate for \$1, 1974 to 1975

Our calculations use the following inflation rate formula to calculate the change in value between 1974 and 1975:

CPI in 1975 CPI in 1974
×
1974 AUD value
=
1975 AUD value

Then plug in historical CPI values. The Australian CPI was 13.9 in the year 1974 and 16 in 1975:

1613.9
×
\$1
=
\$1.15

\$1 in 1974 has the same "purchasing power" or "buying power" as \$1.15 in 1975.

To get the total inflation rate for the 1 years between 1974 and 1975, we use the following formula:

CPI in 1975 - CPI in 1974CPI in 1974
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

16 - 13.913.9
×
100
=
15%

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

• Ayatollah Khomeini, appeals for an Islamic republic of Iran.
• The 1,000th victim of the Northern Ireland conflict between republican and loyalist paramilitaries is taken.
• President Richard Nixon announces his resignation.

## 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 1975 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 25 May. 2020, https://www.officialdata.org/Australia-inflation-rate-in-1975.