Inflation in 1978 and its effect on dollar value
$1 in 1977 is equivalent in purchasing power to about $1.08 in 1978. The dollar had an average inflation rate of 7.88% per year between 1977 and 1978, producing a cumulative price increase of 7.88%. Purchasing power decreased by 7.88% in 1978 compared to 1977. On average, you would have to spend 7.88% more money in 1978 than in 1977 for the same item.
This means that prices in 1978 are 1.08 times higher than average prices since 1977, according to the Bureau of Statistics consumer price index.
The 1977 inflation rate was 12.15%. The inflation rate in 1978 was 7.88%. The 1978 inflation rate is higher compared to the average inflation rate of 3.99% per year between 1978 and 2021.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1978 was 21.90. It was 20.30 in the previous year, 1977. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.
⌃
| Average inflation rate | 7.88% |
| Converted amount ($1 base) | $1.08 |
| Price difference ($1 base) | $0.08 |
| CPI in 1977 | 20.300 |
| CPI in 1978 | 21.900 |
| Inflation in 1977 | 12.15% |
| Inflation in 1978 | 7.88% |
| $1 in 1977 | $1.08 in 1978 |
How to Calculate Inflation Rate for $1, 1977 to 1978
Our calculations use the following inflation rate formula to calculate the change in value between 1977 and 1978:
CPI in 1978
CPI in 1977
×
1977 AUD value
=
1978 AUD value
Then plug in historical CPI values. The Australian CPI was 20.3 in the year 1977 and 21.9 in 1978:
21.920.3
×
$1
=
$1.08
$1 in 1977 has the same "purchasing power" or "buying power" as $1.08 in 1978.
To get the total inflation rate for the 1 years between 1977 and 1978, we use the following formula:
CPI in 1978 - CPI in 1977CPI in 1977
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
21.9 - 20.320.3
×
100
=
8%
News headlines from 1977
Politics and news often influence economic performance. Here's what was happening at the time:
- Apple Computer incorperated by Steve Jobs, Steve Wozniak, and Ronald Wayne.
- The Hindu Kubh Mela gathered 15,000,000 people, making it (at the time) the biggest crowd gathering in history.
- First Apple II computers are shipped.
- The last Guillotine execution was performed on Hamida Djandoubi, convicted torturer and murderer.
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 1978 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Oct. 2021, https://www.officialdata.org/Australia-inflation-rate-in-1978.
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 | 7.88% |
| Converted amount ($1 base) | $1.08 |
| Price difference ($1 base) | $0.08 |
| CPI in 1977 | 20.300 |
| CPI in 1978 | 21.900 |
| Inflation in 1977 | 12.15% |
| Inflation in 1978 | 7.88% |
| $1 in 1977 | $1.08 in 1978 |