Australian inflation rate in 1988: 7.33%

\$

Inflation in 1988 and its effect on dollar value

Purchasing power decreased by 7.33% in 1988 compared to 1987. On average, you would have to spend 7.33% more money in 1988 than in 1987 for the same item.

In other words, \$1 in 1987 is equivalent in purchasing power to about \$1.07 in 1988.

The 1987 inflation rate was 8.41%. The inflation rate in 1988 was 7.33%. The 1988 inflation rate is higher compared to the average inflation rate of 2.70% per year between 1988 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1988 was 49.80. It was 46.40 in the previous year, 1987. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.

 Average inflation rate 7.33% Converted amount (\$1 base) \$1.07 Price difference (\$1 base) \$0.07 CPI in 1987 46.400 CPI in 1988 49.800 Inflation in 1987 8.41% Inflation in 1988 7.33%

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

How to Calculate Inflation Rate for \$1, 1987 to 1988

Our calculations use the following inflation rate formula to calculate the change in value between 1987 and 1988:

CPI in 1988 CPI in 1987
×
1987 AUD value
=
1988 AUD value

Then plug in historical CPI values. The Australian CPI was 46.4 in the year 1987 and 49.8 in 1988:

49.846.4
×
\$1
=
\$1.07

\$1 in 1987 has the same "purchasing power" or "buying power" as \$1.07 in 1988.

To get the total inflation rate for the 1 years between 1987 and 1988, we use the following formula:

CPI in 1988 - CPI in 1987CPI in 1987
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

49.8 - 46.446.4
×
100
=
7%

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

• New Zealand becomes the only nation to legislate against nuclear power, when their Labour government legislates against nuclear weapons and nuclear powered vessels.
• Margaret Thatcher becomes the first British PM in 160 years to win a third consecutive term in office.
• The Dow Jones stock index falls by 508.32 points, the event is later known as Black Monday.

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 1988 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 5 Jun. 2020, https://www.officialdata.org/Australia-inflation-rate-in-1988.