Why a dollar today is worth only 2% of a dollar in 1928
Updated: June 11, 2020According to the Bureau of Statistics consumer price index, today's prices in 2020 are 3,931.71% higher than average prices since 1928. This means that a dollar today only buys 2.48% of what it could buy in 1928. The Australian dollar experienced an average inflation rate of 4.10% per year during this period, causing the real value of a dollar to decrease.
In other words, $100 in 1928 is equivalent in purchasing power to about $4,031.71 in 2020, a difference of $3,931.71 over 92 years.
The 1928 inflation rate was 3.57%. The current year-over-year inflation rate (2019 to 2020) is now 1.90%1. If this number holds, $100 today will be equivalent in buying power to $101.90 next year.
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| Cumulative price change | 3,931.71% |
| Average inflation rate | 4.10% |
| Converted amount ($100 base) | $4,031.71 |
| Price difference ($100 base) | $3,931.71 |
| CPI in 1928 | 2.900 |
| CPI in 2020 | 116.919 |
| Inflation in 1928 | 3.57% |
| Inflation in 2020 | 1.90% |
Buying power of $100 in 1928
This chart shows a calculation of buying power equivalence for $100 in 1928 (price index tracking began in 1922).
For example, if you started with $100, you would need to end with $4,031.71 in order to "adjust" for inflation (sometimes refered to as "beating inflation").
When $100 is equivalent to $4,031.71 over time, that means that the "real value" of a single Australian dollar decreases over time. In other words, a dollar will pay for fewer items at the store.
This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1928 dollars, the chart below shows how $100 is worth less over 92 years.
According to the Bureau of Statistics, each of these AUD amounts below is equal in terms of what it could buy at the time:
This conversion table shows various other 1928 amounts in today's dollars, based on the 3,931.71% change in prices:
| Initial value | Equivalent value |
|---|---|
| $1 dollar in 1928 | $40.32 dollars today |
| $5 dollars in 1928 | $201.59 dollars today |
| $10 dollars in 1928 | $403.17 dollars today |
| $50 dollars in 1928 | $2,015.85 dollars today |
| $100 dollars in 1928 | $4,031.71 dollars today |
| $500 dollars in 1928 | $20,158.53 dollars today |
| $1,000 dollars in 1928 | $40,317.05 dollars today |
| $5,000 dollars in 1928 | $201,585.26 dollars today |
| $10,000 dollars in 1928 | $403,170.51 dollars today |
| $50,000 dollars in 1928 | $2,015,852.56 dollars today |
| $100,000 dollars in 1928 | $4,031,705.12 dollars today |
| $500,000 dollars in 1928 | $20,158,525.62 dollars today |
| $1,000,000 dollars in 1928 | $40,317,051.24 dollars today |
How to Calculate Inflation Rate for $100 since 1928
Our calculations use the following inflation rate formula to calculate the change in value between 1928 and today:
CPI today
CPI in 1928
×
1928 AUD value
=
Today's value
Then plug in historical CPI values. The Australian CPI was 2.9 in the year 1928 and 116.91944859999998 in 2020:
116.919448599999982.9
×
$100
=
$4,031.71
$100 in 1928 has the same "purchasing power" or "buying power" as $4,031.71 in 2020.
To get the total inflation rate for the 92 years between 1928 and 2020, we use the following formula:
CPI in 2020 - CPI in 1928CPI in 1928
×
100
=
Cumulative inflation rate (92 years)
Plugging in the values to this equation, we get:
116.91944859999998 - 2.92.9
×
100
=
3,932%
News headlines from 1928
Politics and news often influence economic performance. Here's what was happening at the time:
- Amelia Earhart becomes the first woman to fly across the Atlantic Ocean.
- Jawaharlal Nehru requests Indian independence.
- Alexander Fleming, a Scottish bacteriologist, accidentally discovers penicillin while studying influenza.
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: “Value of 1928 dollars today | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 13 Jul. 2020, https://www.officialdata.org/au/inflation/1928.
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.
| Cumulative price change | 3,931.71% |
| Average inflation rate | 4.10% |
| Converted amount ($100 base) | $4,031.71 |
| Price difference ($100 base) | $3,931.71 |
| CPI in 1928 | 2.900 |
| CPI in 2020 | 116.919 |
| Inflation in 1928 | 3.57% |
| Inflation in 2020 | 1.90% |