# Australian inflation rate in 2018: 1.26%

## Australia Inflation Calculator

\$

### Inflation in 2018 and Its Effect on Dollar Value

Purchasing power decreased by 1.26% in 2018 compared to 2017. On average, you would have to spend 1.26% more money in 2018 than in 2017 for the same item.

In other words, \$1 in 2017 is equivalent in purchasing power to about \$1.01 in 2018.

The 2017 inflation rate was 1.92%. The inflation rate in 2018 was 1.26%. The 2018 inflation rate is lower compared to the average inflation rate of 1.90% per year between 2018 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2018 was 112.60. It was 111.20 in the previous year, 2017. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.

 Average inflation rate 1.26% Converted amount (\$1 base) \$1.01 Price difference (\$1 base) \$0.01 CPI in 2017 111.200 CPI in 2018 112.600 Inflation in 2017 1.92% Inflation in 2018 1.26%

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

### How to Calculate Inflation Rate for \$1, 2017 to 2018

This inflation calculator uses the following inflation rate formula:

CPI in 2018CPI in 2017
×
2017 AUD value
=
2018 AUD value

Then plug in historical CPI values. The Australian CPI was 111.2 in the year 2017 and 112.6 in 2018:

112.6111.2
×
\$1
=
\$1.01

\$1 in 2017 has the same "purchasing power" or "buying power" as \$1.01 in 2018.

To get the total inflation rate for the 1 years between 2017 and 2018, we use the following formula:

CPI in 2018 - CPI in 2017CPI in 2017
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

112.6 - 111.2111.2
×
100
=
1%

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

• Donald Trump sworn in as the 45th president of the United States.
• Hurricanes Harvey and Irma strike southeast Texas and Florida, causing extensive flooding and damage.
• Gunman kills 58 people at a Las Vegas concert, making it the deadliest mass shooting in modern U.S. history.
• North Korea tests a hydrogen bomb and over a dozen ballistic missiles amidst soaring tensions with the U.S.

### 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 2018 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 4 Apr. 2020, https://www.officialdata.org/Australia-inflation-rate-in-2018.