What has caused inflation to fluctuate in Australia?
While inflation has remained relatively stable over the past twenty-five years, several major economic events caused sharp fluctuations in Australia’s exchange rate and domestic demand, which impacted the rate of inflation. In 1997, the Australian economy briefly experienced deflation as a result of the Asian Financial Crisis (AFC).
What caused the great inflation of the 1970s?
In the early 1970s, the stock market slumped, unemployment rose and the United States found itself suffering from an inflation crisis — also known as the "Great Inflation" — that lasted a decade. The causes of the Great Inflation of the 1970s have been analyzed and debated ever since.
How has Australia’s CPI changed over the past 70 years?
Looking at Australia’s CPI over the past 70 years shows how Australia has experienced long periods of high inflation, disinflation, and more recently, low and stable inflation.
What was the inflation rate in Australia in 1970?
The Australian CPI was 9.8 in the year 1970 and 119.7 in 2022: $100 in 1970 has the same "purchasing power" or "buying power" as $1,221.43 in 2022. To get the total inflation rate for the 52 years between 1970 and 2022, we use the following formula: