Inflation in 2025 and its effect on dollar value
$1 in 2024 is equivalent in purchasing power to about $1.03 in 2025. The dollar had an average inflation rate of 2.60% per year between 2024 and 2025, producing a cumulative price increase of 2.60%. Purchasing power decreased by 2.60% in 2025 compared to 2024. On average, you would have to spend 2.60% more money in 2025 than in 2024 for the same item.
This means that prices in 2025 are 1.03 times as high as average prices since 2024, according to the Bureau of Statistics consumer price index.
The inflation rate in 2024 was 3.36%. The inflation rate in 2025 was 2.60%.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2025 was 142.00. It was 138.40 in the previous year, 2024. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.
⌃
| Average inflation rate | 2.60% |
|
Converted amount $1 base | $1.03 |
|
Price difference $1 base | $0.03 |
| CPI in 2024 | 138.400 |
| CPI in 2025 | 142.000 |
| Inflation in 2024 | 3.36% |
| Inflation in 2025 | 2.60% |
| $1 in 2024 | $1.03 in 2025 |
How to calculate inflation rate for $1, 2024 to 2025
Our calculations use the following inflation rate formula to calculate the change in value between 2024 and 2025:
CPI in 2025CPI in 2024
×
2024 AUD value
=
2025 AUD value
Then plug in historical CPI values. The Australian CPI was 138.4 in the year 2024 and 142 in 2025:
142138.4
×
$1
=
$1.03
$1 in 2024 has the same "purchasing power" or "buying power" as $1.03 in 2025.
To get the total inflation rate for the 1 years between 2024 and 2025, we use the following formula:
CPI in 2025 - CPI in 2024CPI in 2024
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
142 - 138.4138.4
×
100
=
3%
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 2025 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 21 Feb. 2026, https://www.officialdata.org/Australia-inflation-rate-in-2025.
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 | 2.60% |
|
Converted amount $1 base | $1.03 |
|
Price difference $1 base | $0.03 |
| CPI in 2024 | 138.400 |
| CPI in 2025 | 142.000 |
| Inflation in 2024 | 3.36% |
| Inflation in 2025 | 2.60% |
| $1 in 2024 | $1.03 in 2025 |