# \$1 in 1990 is worth \$0.74 in 1986

\$

## Value of \$1 from 1990 to 1986

\$1 in 1990 is equivalent in purchasing power to about \$0.74 in 1986, an increase of \$-0.26 over 4 years. The dollar had an average inflation rate of 7.66% per year between 1986 and 1990, producing a cumulative price increase of -25.57%.

This means that prices in 1986 are 25.57% lower than average prices since 1990, according to the Bureau of Statistics consumer price index.

The 1986 inflation rate was 9.18%. The inflation rate in 1990 was 7.48%. The 1990 inflation rate is higher compared to the average inflation rate of 2.34% per year between 1990 and 2021.

 Cumulative price change -25.57% Average inflation rate 7.66% Converted amount (\$1 base) \$0.74 Price difference (\$1 base) \$-0.26 CPI in 1990 57.500 CPI in 1986 42.800 Inflation in 1986 9.18% Inflation in 1990 7.48% \$1 in 1990 \$0.74 in 1986

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

## Buying power of \$1 in 1986

This chart shows a calculation of buying power equivalence for \$1 in 1986 (price index tracking began in 1922).

For example, if you started with \$1, you would need to end with \$0.74 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.74 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 1986 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: 1986-1990
Year Dollar Value Inflation Rate
1986 \$1.00 9.18%
1987 \$1.08 8.41%
1988 \$1.16 7.33%
1989 \$1.25 7.43%
1990 \$1.34 7.48%
1991 \$1.39 3.13%
1992 \$1.40 1.01%
1993 \$1.42 1.67%
1994 \$1.45 1.97%
1995 \$1.52 4.67%
1996 \$1.56 2.62%
1997 \$1.56 0.30%
1998 \$1.57 0.75%
1999 \$1.60 1.48%
2000 \$1.67 4.53%
2001 \$1.74 4.34%
2002 \$1.80 3.08%
2003 \$1.85 2.73%
2004 \$1.89 2.28%
2005 \$1.94 2.72%
2006 \$2.01 3.49%
2007 \$2.05 2.33%
2008 \$2.14 4.44%
2009 \$2.18 1.74%
2010 \$2.25 2.89%
2011 \$2.32 3.33%
2012 \$2.36 1.71%
2013 \$2.42 2.48%
2014 \$2.48 2.51%
2015 \$2.52 1.51%
2016 \$2.55 1.30%
2017 \$2.60 1.92%
2018 \$2.65 1.89%
2019 \$2.69 1.59%
2020 \$2.71 0.87%
2021 \$2.75 1.55%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1986 amounts in 1990 dollars, based on the -25.57% change in prices:

Conversion: 1986 dollars in 1990
Initial value Equivalent value
\$1 dollar in 1986 \$1.34 dollars in 1990
\$5 dollars in 1986 \$6.72 dollars in 1990
\$10 dollars in 1986 \$13.43 dollars in 1990
\$50 dollars in 1986 \$67.17 dollars in 1990
\$100 dollars in 1986 \$134.35 dollars in 1990
\$500 dollars in 1986 \$671.73 dollars in 1990
\$1,000 dollars in 1986 \$1,343.46 dollars in 1990
\$5,000 dollars in 1986 \$6,717.29 dollars in 1990
\$10,000 dollars in 1986 \$13,434.58 dollars in 1990
\$50,000 dollars in 1986 \$67,172.90 dollars in 1990
\$100,000 dollars in 1986 \$134,345.79 dollars in 1990
\$500,000 dollars in 1986 \$671,728.97 dollars in 1990
\$1,000,000 dollars in 1986 \$1,343,457.94 dollars in 1990

## How to Calculate Inflation Rate for \$1, 1986 to 1990

Our calculations use the following inflation rate formula to calculate the change in value between 1986 and 1990:

CPI in 1986 CPI in 1990
×
1990 AUD value
=
1986 AUD value

Then plug in historical CPI values. The Australian CPI was 57.5 in the year 1990 and 42.8 in 1986:

42.857.5
×
\$1
=
\$0.74

\$1 in 1990 has the same "purchasing power" or "buying power" as \$0.74 in 1986.

To get the total inflation rate for the 4 years between 1986 and 1990, we use the following formula:

CPI in 1986 - CPI in 1990CPI in 1990
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

42.8 - 57.557.5
×
100
=
-26%

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

• Nelson Mandela is released having spent 27 years in South African prison.
• The Hubble Space Telescope takes its first photos from space.
• Dr Penny Jamieson, becomes the first woman to be made an Anglican Bishop, in New Zeeland
• The United States sends troops to Saudi Arabia, marking the beginning of Operation Desert Shield.

## 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 1990 → 1986 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 23 Jun. 2021, https://www.officialdata.org/australia/inflation/1990?amount=1&endYear=1986.

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.