# Australian inflation rate in 1976: 13.13%

\$

## Inflation in 1976 and its effect on dollar value

Purchasing power decreased by 13.13% in 1976 compared to 1975. On average, you would have to spend 13.13% more money in 1976 than in 1975 for the same item.

In other words, \$1 in 1975 is equivalent in purchasing power to about \$1.13 in 1976.

The 1975 inflation rate was 15.11%. The inflation rate in 1976 was 13.13%. The 1976 inflation rate is higher compared to the average inflation rate of 4.33% per year between 1976 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1976 was 18.10. It was 16.00 in the previous year, 1975. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.

 Average inflation rate 13.13% Converted amount (\$1 base) \$1.13 Price difference (\$1 base) \$0.13 CPI in 1975 16.000 CPI in 1976 18.100 Inflation in 1975 15.11% Inflation in 1976 13.13%

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

## How to Calculate Inflation Rate for \$1, 1975 to 1976

Our calculations use the following inflation rate formula to calculate the change in value between 1975 and 1976:

CPI in 1976 CPI in 1975
×
1975 AUD value
=
1976 AUD value

Then plug in historical CPI values. The Australian CPI was 16 in the year 1975 and 18.1 in 1976:

18.116
×
\$1
=
\$1.13

\$1 in 1975 has the same "purchasing power" or "buying power" as \$1.13 in 1976.

To get the total inflation rate for the 1 years between 1975 and 1976, we use the following formula:

CPI in 1976 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

18.1 - 1616
×
100
=
13%

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

• Margaret Thatcher becomes leader of the British Conservative Party, after defeating Edward Heath.
• Ethiopia abrogates its 3,000-year-old monarchy.
• Bill Gates and Paul Allen found Microsoft.
• The US signals the beginning of the end of its involvement Vietnam, after it begins to evacuate its citizens from Saigon.
• Gough Whitlam is removed by Governor General Sir John Kerr: the first time an elected Prime Minister had been deposed in 200 years (Australia).

## 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 1976 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 May. 2020, https://www.officialdata.org/Australia-inflation-rate-in-1976.