# \$1 in 1925 is worth \$1 in 1927

\$

## Value of \$1 from 1925 to 1927

The Australian dollar experienced an average inflation rate of 0.00% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 1925 is equivalent in purchasing power to about \$1 in 1927, a difference of \$0.00 over 2 years.

The 1925 inflation rate was 0.00%. The inflation rate in 1927 was -3.45%. The 1927 inflation rate is lower compared to the average inflation rate of 4.09% per year between 1927 and 2020.

 Average inflation rate 0.00% Converted amount (\$1 base) \$1 Price difference (\$1 base) \$0.00 CPI in 1925 2.800 CPI in 1927 2.800 Inflation in 1925 0.00% Inflation in 1927 -3.45%

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

## Buying power of \$1 in 1925

This chart shows a calculation of buying power equivalence for \$1 in 1925 (price index tracking began in 1922).

For example, if you started with \$1, you would need to end with \$1 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$1 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 1925 dollars, the chart below shows how \$1 is worth less over 2 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:

Dollar inflation: 1925-1927
Year Dollar Value Inflation Rate
1925 \$1.00 -
1926 \$1.04 3.57%
1927 \$1.00 -3.45%
1928 \$1.04 3.57%
1929 \$1.04 0.00%
1930 \$0.96 -6.90%
1931 \$0.89 -7.41%
1932 \$0.86 -4.00%
1933 \$0.82 -4.17%
1934 \$0.82 0.00%
1935 \$0.86 4.35%
1936 \$0.86 0.00%
1937 \$0.89 4.17%
1938 \$0.93 4.00%
1939 \$0.93 0.00%
1940 \$0.96 3.85%
1941 \$1.00 3.70%
1942 \$1.11 10.71%
1943 \$1.14 3.23%
1944 \$1.14 0.00%
1945 \$1.14 0.00%
1946 \$1.14 0.00%
1947 \$1.21 6.25%
1948 \$1.32 8.82%
1949 \$1.43 8.11%
1950 \$1.57 10.00%
1951 \$1.86 18.18%
1952 \$2.18 17.31%
1953 \$2.29 4.92%
1954 \$2.32 1.56%
1955 \$2.36 1.54%
1956 \$2.50 6.06%
1957 \$2.57 2.86%
1958 \$2.57 0.00%
1959 \$2.64 2.78%
1960 \$2.75 4.05%
1961 \$2.79 1.30%
1962 \$2.79 0.00%
1963 \$2.82 1.28%
1964 \$2.89 2.53%
1965 \$3.00 3.70%
1966 \$3.07 2.38%
1967 \$3.18 3.49%
1968 \$3.29 3.37%
1969 \$3.39 3.26%
1970 \$3.50 3.16%
1971 \$3.71 6.12%
1972 \$3.93 5.77%
1973 \$4.29 9.09%
1974 \$4.96 15.83%
1975 \$5.71 15.11%
1976 \$6.46 13.13%
1977 \$7.25 12.15%
1978 \$7.82 7.88%
1979 \$8.54 9.13%
1980 \$9.43 10.46%
1981 \$10.32 9.47%
1982 \$11.46 11.07%
1983 \$12.64 10.28%
1984 \$13.14 3.95%
1985 \$14.00 6.52%
1986 \$15.29 9.18%
1987 \$16.57 8.41%
1988 \$17.79 7.33%
1989 \$19.11 7.43%
1990 \$20.54 7.48%
1991 \$21.18 3.13%
1992 \$21.39 1.01%
1993 \$21.75 1.67%
1994 \$22.18 1.97%
1995 \$23.21 4.67%
1996 \$23.82 2.62%
1997 \$23.89 0.30%
1998 \$24.07 0.75%
1999 \$24.43 1.48%
2000 \$25.54 4.53%
2001 \$26.64 4.34%
2002 \$27.46 3.08%
2003 \$28.21 2.73%
2004 \$28.86 2.28%
2005 \$29.64 2.72%
2006 \$30.68 3.49%
2007 \$31.39 2.33%
2008 \$32.79 4.44%
2009 \$33.36 1.74%
2010 \$34.32 2.89%
2011 \$35.46 3.33%
2012 \$36.07 1.71%
2013 \$36.96 2.48%
2014 \$37.89 2.51%
2015 \$38.46 1.51%
2016 \$38.96 1.30%
2017 \$39.71 1.92%
2018 \$40.21 1.26%
2019 \$40.98 1.90%
2020 \$41.76 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1925 amounts in 1927 dollars, based on the 0.00% change in prices:

Conversion Table: Value of a dollar in 1927
Initial value Equivalent value
\$1 dollar in 1925 \$1.00 dollars in 1927
\$5 dollars in 1925 \$5.00 dollars in 1927
\$10 dollars in 1925 \$10.00 dollars in 1927
\$50 dollars in 1925 \$50.00 dollars in 1927
\$100 dollars in 1925 \$100.00 dollars in 1927
\$500 dollars in 1925 \$500.00 dollars in 1927
\$1,000 dollars in 1925 \$1,000.00 dollars in 1927
\$5,000 dollars in 1925 \$5,000.00 dollars in 1927
\$10,000 dollars in 1925 \$10,000.00 dollars in 1927
\$50,000 dollars in 1925 \$50,000.00 dollars in 1927
\$100,000 dollars in 1925 \$100,000.00 dollars in 1927
\$500,000 dollars in 1925 \$500,000.00 dollars in 1927
\$1,000,000 dollars in 1925 \$1,000,000.00 dollars in 1927

## How to Calculate Inflation Rate for \$1, 1925 to 1927

Our calculations use the following inflation rate formula to calculate the change in value between 1925 and 1927:

CPI in 1927 CPI in 1925
×
1925 AUD value
=
1927 AUD value

Then plug in historical CPI values. The Australian CPI was 2.8 in the year 1925 and 2.8 in 1927:

2.82.8
×
\$1
=
\$1

\$1 in 1925 has the same "purchasing power" or "buying power" as \$1 in 1927.

To get the total inflation rate for the 2 years between 1925 and 1927, we use the following formula:

CPI in 1927 - CPI in 1925CPI in 1925
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

2.8 - 2.82.8
×
100
=
0%

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

• The Ku Klux Klan's first national march takes place in Washington.
• The last Qajar Shah of Iran is deposed with Reza Shah Pahlavi taking over.
• Scopes monkey trial ends in Dayton, Tennessee, finding John T. Scopes guilty of teaching evolution.

## 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: “\$1 in 1925 → 1927 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 4 Jun. 2020, https://www.officialdata.org/australia/inflation/1925?amount=1&endYear=1927.