# \$1 in 1975 is worth \$0.65 in 1971

\$

## Value of \$1 from 1975 to 1971

\$1 in 1975 is equivalent in purchasing power to about \$0.65 in 1971, an increase of \$-0.35 over 4 years. The dollar had an average inflation rate of 11.37% per year between 1971 and 1975, producing a cumulative price increase of -35.00%.

This means that prices in 1971 are 35% lower than average prices since 1975, according to the Bureau of Statistics consumer price index.

The 1971 inflation rate was 6.12%. The inflation rate in 1975 was 15.11%. The 1975 inflation rate is higher compared to the average inflation rate of 4.44% per year between 1975 and 2021.

 Cumulative price change -35.00% Average inflation rate 11.37% Converted amount (\$1 base) \$0.65 Price difference (\$1 base) \$-0.35 CPI in 1975 16.000 CPI in 1971 10.400 Inflation in 1971 6.12% Inflation in 1975 15.11% \$1 in 1975 \$0.65 in 1971

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

## Buying power of \$1 in 1971

This chart shows a calculation of buying power equivalence for \$1 in 1971 (price index tracking began in 1922).

For example, if you started with \$1, you would need to end with \$0.65 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.65 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 1971 dollars, the chart below shows how \$1 is worth less over 4 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: 1971-1975
Year Dollar Value Inflation Rate
1971 \$1.00 6.12%
1972 \$1.06 5.77%
1973 \$1.15 9.09%
1974 \$1.34 15.83%
1975 \$1.54 15.11%
1976 \$1.74 13.13%
1977 \$1.95 12.15%
1978 \$2.11 7.88%
1979 \$2.30 9.13%
1980 \$2.54 10.46%
1981 \$2.78 9.47%
1982 \$3.09 11.07%
1983 \$3.40 10.28%
1984 \$3.54 3.95%
1985 \$3.77 6.52%
1986 \$4.12 9.18%
1987 \$4.46 8.41%
1988 \$4.79 7.33%
1989 \$5.14 7.43%
1990 \$5.53 7.48%
1991 \$5.70 3.13%
1992 \$5.76 1.01%
1993 \$5.86 1.67%
1994 \$5.97 1.97%
1995 \$6.25 4.67%
1996 \$6.41 2.62%
1997 \$6.43 0.30%
1998 \$6.48 0.75%
1999 \$6.58 1.48%
2000 \$6.88 4.53%
2001 \$7.17 4.34%
2002 \$7.39 3.08%
2003 \$7.60 2.73%
2004 \$7.77 2.28%
2005 \$7.98 2.72%
2006 \$8.26 3.49%
2007 \$8.45 2.33%
2008 \$8.83 4.44%
2009 \$8.98 1.74%
2010 \$9.24 2.89%
2011 \$9.55 3.33%
2012 \$9.71 1.71%
2013 \$9.95 2.48%
2014 \$10.20 2.51%
2015 \$10.36 1.51%
2016 \$10.49 1.30%
2017 \$10.69 1.92%
2018 \$10.89 1.89%
2019 \$11.07 1.59%
2020 \$11.16 0.87%
2021 \$11.34 1.55%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1971 amounts in 1975 dollars, based on the -35.00% change in prices:

Conversion: 1971 dollars in 1975
Initial value Equivalent value
\$1 dollar in 1971 \$1.54 dollars in 1975
\$5 dollars in 1971 \$7.69 dollars in 1975
\$10 dollars in 1971 \$15.38 dollars in 1975
\$50 dollars in 1971 \$76.92 dollars in 1975
\$100 dollars in 1971 \$153.85 dollars in 1975
\$500 dollars in 1971 \$769.23 dollars in 1975
\$1,000 dollars in 1971 \$1,538.46 dollars in 1975
\$5,000 dollars in 1971 \$7,692.31 dollars in 1975
\$10,000 dollars in 1971 \$15,384.62 dollars in 1975
\$50,000 dollars in 1971 \$76,923.08 dollars in 1975
\$100,000 dollars in 1971 \$153,846.15 dollars in 1975
\$500,000 dollars in 1971 \$769,230.77 dollars in 1975
\$1,000,000 dollars in 1971 \$1,538,461.54 dollars in 1975

## How to Calculate Inflation Rate for \$1, 1971 to 1975

Our calculations use the following inflation rate formula to calculate the change in value between 1971 and 1975:

CPI in 1971 CPI in 1975
×
1975 AUD value
=
1971 AUD value

Then plug in historical CPI values. The Australian CPI was 16 in the year 1975 and 10.4 in 1971:

10.416
×
\$1
=
\$0.65

\$1 in 1975 has the same "purchasing power" or "buying power" as \$0.65 in 1971.

To get the total inflation rate for the 4 years between 1971 and 1975, we use the following formula:

CPI in 1971 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

10.4 - 1616
×
100
=
-35%

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

• Margaret Thatcher becomes leader of the British Conservative Party, after defeating Edward Heath.
• Ethiopia abrogates its 3,000-year-old monarchy.
• Bill Gates and Paul Allen found Microsoft.
• The US signals the beginning of the end of its involvement Vietnam, after it begins to evacuate its citizens from Saigon.
• Gough Whitlam is removed by Governor General Sir John Kerr: the first time an elected Prime Minister had been deposed in 200 years (Australia).

## 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 1975 → 1971 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 18 Sep. 2021, https://www.officialdata.org/australia/inflation/1975?amount=1&endYear=1971.

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.