Inflation in 1987 and its effect on dollar value
Purchasing power decreased by 8.41% in 1987 compared to 1986. On average, you would have to spend 8.41% more money in 1987 than in 1986 for the same item.
In other words, $1 in 1986 is equivalent in purchasing power to about $1.08 in 1987.
The 1986 inflation rate was 9.18%. The inflation rate in 1987 was 8.41%. The 1987 inflation rate is higher compared to the average inflation rate of 2.84% per year between 1987 and 2020.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1987 was 46.40. It was 42.80 in the previous year, 1986. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.
⌃
| Average inflation rate | 8.41% |
| Converted amount ($1 base) | $1.08 |
| Price difference ($1 base) | $0.08 |
| CPI in 1986 | 42.800 |
| CPI in 1987 | 46.400 |
| Inflation in 1986 | 9.18% |
| Inflation in 1987 | 8.41% |
How to Calculate Inflation Rate for $1, 1986 to 1987
Our calculations use the following inflation rate formula to calculate the change in value between 1986 and 1987:
CPI in 1987
CPI in 1986
×
1986 AUD value
=
1987 AUD value
Then plug in historical CPI values. The Australian CPI was 42.8 in the year 1986 and 46.4 in 1987:
46.442.8
×
$1
=
$1.08
$1 in 1986 has the same "purchasing power" or "buying power" as $1.08 in 1987.
To get the total inflation rate for the 1 years between 1986 and 1987, we use the following formula:
CPI in 1987 - CPI in 1986CPI in 1986
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
46.4 - 42.842.8
×
100
=
8%
News headlines from 1986
Politics and news often influence economic performance. Here's what was happening at the time:
- Ferdinand Marcos becomes president of the Philippines after rigged elections.
- 6.5 million People hold hands across the US in an event referred to as Hands Across America.
- Doctors announce that the drug AZT will be available to AIDS patients.
- Talks between Ronald Reagan and Mikhail Gorbachev begin at the Reykjavik summit.
- Mrs. Davina Thompson receives the first heart, lung and liver transplant in Cambridge, England.
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 1987 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 3 Jul. 2020, https://www.officialdata.org/Australia-inflation-rate-in-1987.
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 | 8.41% |
| Converted amount ($1 base) | $1.08 |
| Price difference ($1 base) | $0.08 |
| CPI in 1986 | 42.800 |
| CPI in 1987 | 46.400 |
| Inflation in 1986 | 9.18% |
| Inflation in 1987 | 8.41% |