$1 in 1940 is worth $1.15 in 1942

Value of $1 from 1940 to 1942

According to the Bureau of Statistics consumer price index, prices in 1942 are 14.81% higher than average prices since 1940. The Australian dollar experienced an average inflation rate of 7.15% per year during this period, causing the real value of a dollar to decrease.

In other words, $1 in 1940 is equivalent in purchasing power to about $1.15 in 1942, a difference of $0.15 over 2 years.

The 1940 inflation rate was 3.85%. The inflation rate in 1942 was 10.71%. The 1942 inflation rate is higher compared to the average inflation rate of 4.76% per year between 1942 and 2020.


Inflation from 1940 to 1942
Cumulative price change 14.81%
Average inflation rate 7.15%
Converted amount ($1 base) $1.15
Price difference ($1 base) $0.15
CPI in 1940 2.700
CPI in 1942 3.100
Inflation in 1940 3.85%
Inflation in 1942 10.71%

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

Buying power of $1 in 1940

This chart shows a calculation of buying power equivalence for $1 in 1940 (price index tracking began in 1922).

For example, if you started with $1, you would need to end with $1.15 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $1 is equivalent to $1.15 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 1940 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: 1940-1942
Year Dollar Value Inflation Rate
1940 $1.00 3.85%
1941 $1.04 3.70%
1942 $1.15 10.71%
1943 $1.19 3.23%
1944 $1.19 0.00%
1945 $1.19 0.00%
1946 $1.19 0.00%
1947 $1.26 6.25%
1948 $1.37 8.82%
1949 $1.48 8.11%
1950 $1.63 10.00%
1951 $1.93 18.18%
1952 $2.26 17.31%
1953 $2.37 4.92%
1954 $2.41 1.56%
1955 $2.44 1.54%
1956 $2.59 6.06%
1957 $2.67 2.86%
1958 $2.67 0.00%
1959 $2.74 2.78%
1960 $2.85 4.05%
1961 $2.89 1.30%
1962 $2.89 0.00%
1963 $2.93 1.28%
1964 $3.00 2.53%
1965 $3.11 3.70%
1966 $3.19 2.38%
1967 $3.30 3.49%
1968 $3.41 3.37%
1969 $3.52 3.26%
1970 $3.63 3.16%
1971 $3.85 6.12%
1972 $4.07 5.77%
1973 $4.44 9.09%
1974 $5.15 15.83%
1975 $5.93 15.11%
1976 $6.70 13.13%
1977 $7.52 12.15%
1978 $8.11 7.88%
1979 $8.85 9.13%
1980 $9.78 10.46%
1981 $10.70 9.47%
1982 $11.89 11.07%
1983 $13.11 10.28%
1984 $13.63 3.95%
1985 $14.52 6.52%
1986 $15.85 9.18%
1987 $17.19 8.41%
1988 $18.44 7.33%
1989 $19.81 7.43%
1990 $21.30 7.48%
1991 $21.96 3.13%
1992 $22.19 1.01%
1993 $22.56 1.67%
1994 $23.00 1.97%
1995 $24.07 4.67%
1996 $24.70 2.62%
1997 $24.78 0.30%
1998 $24.96 0.75%
1999 $25.33 1.48%
2000 $26.48 4.53%
2001 $27.63 4.34%
2002 $28.48 3.08%
2003 $29.26 2.73%
2004 $29.93 2.28%
2005 $30.74 2.72%
2006 $31.81 3.49%
2007 $32.56 2.33%
2008 $34.00 4.44%
2009 $34.59 1.74%
2010 $35.59 2.89%
2011 $36.78 3.33%
2012 $37.41 1.71%
2013 $38.33 2.48%
2014 $39.30 2.51%
2015 $39.89 1.51%
2016 $40.41 1.30%
2017 $41.19 1.92%
2018 $41.70 1.26%
2019 $42.50 1.90%
2020 $43.30 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1940 amounts in 1942 dollars, based on the 14.81% change in prices:

Conversion Table: Value of a dollar in 1942
Initial value Equivalent value
$1 dollar in 1940 $1.15 dollars in 1942
$5 dollars in 1940 $5.74 dollars in 1942
$10 dollars in 1940 $11.48 dollars in 1942
$50 dollars in 1940 $57.41 dollars in 1942
$100 dollars in 1940 $114.81 dollars in 1942
$500 dollars in 1940 $574.07 dollars in 1942
$1,000 dollars in 1940 $1,148.15 dollars in 1942
$5,000 dollars in 1940 $5,740.74 dollars in 1942
$10,000 dollars in 1940 $11,481.48 dollars in 1942
$50,000 dollars in 1940 $57,407.41 dollars in 1942
$100,000 dollars in 1940 $114,814.81 dollars in 1942
$500,000 dollars in 1940 $574,074.07 dollars in 1942
$1,000,000 dollars in 1940 $1,148,148.15 dollars in 1942

How to Calculate Inflation Rate for $1, 1940 to 1942

Our calculations use the following inflation rate formula to calculate the change in value between 1940 and 1942:

CPI in 1942 CPI in 1940
×
1940 AUD value
=
1942 AUD value

Then plug in historical CPI values. The Australian CPI was 2.7 in the year 1940 and 3.1 in 1942:

3.12.7
×
$1
=
$1.15

$1 in 1940 has the same "purchasing power" or "buying power" as $1.15 in 1942.

To get the total inflation rate for the 2 years between 1940 and 1942, we use the following formula:

CPI in 1942 - CPI in 1940CPI in 1940
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

3.1 - 2.72.7
×
100
=
15%

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 1940 → 1942 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 4 Jun. 2020, https://www.officialdata.org/australia/inflation/1940?amount=1&endYear=1942.

Special thanks to QuickChart for providing downloadable chart images.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


Ian Webster

About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

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Inflation from 1940 to 1942
Cumulative price change 14.81%
Average inflation rate 7.15%
Converted amount ($1 base) $1.15
Price difference ($1 base) $0.15
CPI in 1940 2.700
CPI in 1942 3.100
Inflation in 1940 3.85%
Inflation in 1942 10.71%