# \$1 in 1985 is worth \$2.98 today

\$

## Value of \$1 from 1985 to 2020

According to the Bureau of Statistics consumer price index, today's prices in 2020 are 198.26% higher than average prices since 1985. The Australian dollar experienced an average inflation rate of 3.17% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 1985 is equivalent in purchasing power to about \$2.98 in 2020, a difference of \$1.98 over 35 years.

The 1985 inflation rate was 6.52%. The current year-over-year inflation rate (2019 to 2020) is now 1.90%1. If this number holds, \$1 today will be equivalent in buying power to \$1.02 next year.

 Cumulative price change 198.26% Average inflation rate 3.17% Converted amount (\$1 base) \$2.98 Price difference (\$1 base) \$1.98 CPI in 1985 39.200 CPI in 2020 116.919 Inflation in 1985 6.52% Inflation in 2020 1.90%

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

## Buying power of \$1 in 1985

This chart shows a calculation of buying power equivalence for \$1 in 1985 (price index tracking began in 1922).

For example, if you started with \$1, you would need to end with \$2.98 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$2.98 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 1985 dollars, the chart below shows how \$1 is worth less over 35 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: 1985-2020
Year Dollar Value Inflation Rate
1985 \$1.00 6.52%
1986 \$1.09 9.18%
1987 \$1.18 8.41%
1988 \$1.27 7.33%
1989 \$1.36 7.43%
1990 \$1.47 7.48%
1991 \$1.51 3.13%
1992 \$1.53 1.01%
1993 \$1.55 1.67%
1994 \$1.58 1.97%
1995 \$1.66 4.67%
1996 \$1.70 2.62%
1997 \$1.71 0.30%
1998 \$1.72 0.75%
1999 \$1.74 1.48%
2000 \$1.82 4.53%
2001 \$1.90 4.34%
2002 \$1.96 3.08%
2003 \$2.02 2.73%
2004 \$2.06 2.28%
2005 \$2.12 2.72%
2006 \$2.19 3.49%
2007 \$2.24 2.33%
2008 \$2.34 4.44%
2009 \$2.38 1.74%
2010 \$2.45 2.89%
2011 \$2.53 3.33%
2012 \$2.58 1.71%
2013 \$2.64 2.48%
2014 \$2.71 2.51%
2015 \$2.75 1.51%
2016 \$2.78 1.30%
2017 \$2.84 1.92%
2018 \$2.87 1.26%
2019 \$2.93 1.90%
2020 \$2.98 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 29 more rows

This conversion table shows various other 1985 amounts in today's dollars, based on the 198.26% change in prices:

Conversion Table: Value of a dollar today
Initial value Equivalent value
\$1 dollar in 1985 \$2.98 dollars today
\$5 dollars in 1985 \$14.91 dollars today
\$10 dollars in 1985 \$29.83 dollars today
\$50 dollars in 1985 \$149.13 dollars today
\$100 dollars in 1985 \$298.26 dollars today
\$500 dollars in 1985 \$1,491.32 dollars today
\$1,000 dollars in 1985 \$2,982.64 dollars today
\$5,000 dollars in 1985 \$14,913.19 dollars today
\$10,000 dollars in 1985 \$29,826.39 dollars today
\$50,000 dollars in 1985 \$149,131.95 dollars today
\$100,000 dollars in 1985 \$298,263.90 dollars today
\$500,000 dollars in 1985 \$1,491,319.50 dollars today
\$1,000,000 dollars in 1985 \$2,982,638.99 dollars today

## How to Calculate Inflation Rate for \$1 since 1985

Our calculations use the following inflation rate formula to calculate the change in value between 1985 and today:

CPI today CPI in 1985
×
1985 AUD value
=
Today's value

Then plug in historical CPI values. The Australian CPI was 39.2 in the year 1985 and 116.91944859999998 in 2020:

116.9194485999999839.2
×
\$1
=
\$2.98

\$1 in 1985 has the same "purchasing power" or "buying power" as \$2.98 in 2020.

To get the total inflation rate for the 35 years between 1985 and 2020, we use the following formula:

CPI in 2020 - CPI in 1985CPI in 1985
×
100
=
Cumulative inflation rate (35 years)

Plugging in the values to this equation, we get:

116.91944859999998 - 39.239.2
×
100
=
198%

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

• Mikhail Gorbachev replaces Konstantin Chernenko as leader of the Soviet Union.
• Earthquake with a magnitude of 8.1 rocks Mexico City and kills 10,000 people, leaving over 250,000 homeless.
• Mikhail Gorbachev (leader of the Soviet Union) and Ronald Reagan (President of the United States) meet for the first time.
• Ernie Wise makes the first mobile phone call in the UK.

## 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 1985 → 2020 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 24 Sep. 2020, https://www.officialdata.org/australia/inflation/1985?amount=1&endYear=2020.

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.