# \$1 in 1935 is worth \$1.13 in 1940

\$

## Value of \$1 from 1935 to 1940

According to the Bureau of Statistics consumer price index, prices in 1940 are 12.50% higher than average prices since 1935. The Australian dollar experienced an average inflation rate of 2.38% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 1935 is equivalent in purchasing power to about \$1.13 in 1940, a difference of \$0.13 over 5 years.

The 1935 inflation rate was 4.35%. The inflation rate in 1940 was 3.85%. The 1940 inflation rate is lower compared to the average inflation rate of 4.82% per year between 1940 and 2020.

 Cumulative price change 12.50% Average inflation rate 2.38% Converted amount (\$1 base) \$1.13 Price difference (\$1 base) \$0.13 CPI in 1935 2.400 CPI in 1940 2.700 Inflation in 1935 4.35% Inflation in 1940 3.85%

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

## Buying power of \$1 in 1935

This chart shows a calculation of buying power equivalence for \$1 in 1935 (price index tracking began in 1922).

For example, if you started with \$1, you would need to end with \$1.13 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$1.13 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 1935 dollars, the chart below shows how \$1 is worth less over 5 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: 1935-1940
Year Dollar Value Inflation Rate
1935 \$1.00 4.35%
1936 \$1.00 0.00%
1937 \$1.04 4.17%
1938 \$1.08 4.00%
1939 \$1.08 0.00%
1940 \$1.13 3.85%
1941 \$1.17 3.70%
1942 \$1.29 10.71%
1943 \$1.33 3.23%
1944 \$1.33 0.00%
1945 \$1.33 0.00%
1946 \$1.33 0.00%
1947 \$1.42 6.25%
1948 \$1.54 8.82%
1949 \$1.67 8.11%
1950 \$1.83 10.00%
1951 \$2.17 18.18%
1952 \$2.54 17.31%
1953 \$2.67 4.92%
1954 \$2.71 1.56%
1955 \$2.75 1.54%
1956 \$2.92 6.06%
1957 \$3.00 2.86%
1958 \$3.00 0.00%
1959 \$3.08 2.78%
1960 \$3.21 4.05%
1961 \$3.25 1.30%
1962 \$3.25 0.00%
1963 \$3.29 1.28%
1964 \$3.38 2.53%
1965 \$3.50 3.70%
1966 \$3.58 2.38%
1967 \$3.71 3.49%
1968 \$3.83 3.37%
1969 \$3.96 3.26%
1970 \$4.08 3.16%
1971 \$4.33 6.12%
1972 \$4.58 5.77%
1973 \$5.00 9.09%
1974 \$5.79 15.83%
1975 \$6.67 15.11%
1976 \$7.54 13.13%
1977 \$8.46 12.15%
1978 \$9.13 7.88%
1979 \$9.96 9.13%
1980 \$11.00 10.46%
1981 \$12.04 9.47%
1982 \$13.38 11.07%
1983 \$14.75 10.28%
1984 \$15.33 3.95%
1985 \$16.33 6.52%
1986 \$17.83 9.18%
1987 \$19.33 8.41%
1988 \$20.75 7.33%
1989 \$22.29 7.43%
1990 \$23.96 7.48%
1991 \$24.71 3.13%
1992 \$24.96 1.01%
1993 \$25.38 1.67%
1994 \$25.88 1.97%
1995 \$27.08 4.67%
1996 \$27.79 2.62%
1997 \$27.88 0.30%
1998 \$28.08 0.75%
1999 \$28.50 1.48%
2000 \$29.79 4.53%
2001 \$31.08 4.34%
2002 \$32.04 3.08%
2003 \$32.92 2.73%
2004 \$33.67 2.28%
2005 \$34.58 2.72%
2006 \$35.79 3.49%
2007 \$36.63 2.33%
2008 \$38.25 4.44%
2009 \$38.92 1.74%
2010 \$40.04 2.89%
2011 \$41.38 3.33%
2012 \$42.08 1.71%
2013 \$43.13 2.48%
2014 \$44.21 2.51%
2015 \$44.88 1.51%
2016 \$45.46 1.30%
2017 \$46.33 1.92%
2018 \$46.92 1.26%
2019 \$47.81 1.90%
2020 \$48.72 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1935 amounts in 1940 dollars, based on the 12.50% change in prices:

Conversion Table: Value of a dollar in 1940
Initial value Equivalent value
\$1 dollar in 1935 \$1.13 dollars in 1940
\$5 dollars in 1935 \$5.63 dollars in 1940
\$10 dollars in 1935 \$11.25 dollars in 1940
\$50 dollars in 1935 \$56.25 dollars in 1940
\$100 dollars in 1935 \$112.50 dollars in 1940
\$500 dollars in 1935 \$562.50 dollars in 1940
\$1,000 dollars in 1935 \$1,125.00 dollars in 1940
\$5,000 dollars in 1935 \$5,625.00 dollars in 1940
\$10,000 dollars in 1935 \$11,250.00 dollars in 1940
\$50,000 dollars in 1935 \$56,250.00 dollars in 1940
\$100,000 dollars in 1935 \$112,500.00 dollars in 1940
\$500,000 dollars in 1935 \$562,500.00 dollars in 1940
\$1,000,000 dollars in 1935 \$1,125,000.00 dollars in 1940

## How to Calculate Inflation Rate for \$1, 1935 to 1940

Our calculations use the following inflation rate formula to calculate the change in value between 1935 and 1940:

CPI in 1940 CPI in 1935
×
1935 AUD value
=
1940 AUD value

Then plug in historical CPI values. The Australian CPI was 2.4 in the year 1935 and 2.7 in 1940:

2.72.4
×
\$1
=
\$1.13

\$1 in 1935 has the same "purchasing power" or "buying power" as \$1.13 in 1940.

To get the total inflation rate for the 5 years between 1935 and 1940, we use the following formula:

CPI in 1940 - CPI in 1935CPI in 1935
×
100
=
Cumulative inflation rate (5 years)

Plugging in the values to this equation, we get:

2.7 - 2.42.4
×
100
=
13%

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

• Hitler violates the Treaty of Versailles by ordering German rearmament.
• In an event known as "Black Sunday", a severe sandstorm strikes the US Midwest, coining the term "Dust Bowl".
• Communist forces end their Long March bringing Mao Zedong to prominence.
• First trans-pacific airmail flight by a flying boat the "China Clipper" that took off from Alameda, California

## 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 1935 → 1940 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 19 Sep. 2020, https://www.officialdata.org/australia/inflation/1935?amount=1&endYear=1940.

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.