Inflation Calculator

Understand the real purchasing power of money over time using Australian Consumer Price Index (CPI) data from the ABS.

Inflation Details

Amount ?

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From Year ?

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Inflation Rate ?

% p.a.

Australian CPI reference rates (ABS data):
2020–2021: 2.9% | 2021–2022: 6.1% | 2022–2023: 7.0% | 2023–2024: 3.8% | RBA target: 2–3%

Results

Adjusted Value

$12,292.55

After 6 years at 3.5% p.a.

	Amount

Purchasing Power Over Time

About Australian Inflation & CPI

The Consumer Price Index (CPI) measures the change in prices paid by households for a basket of goods and services. The Australian Bureau of Statistics (ABS) publishes CPI data quarterly.

RBA Inflation Target

The Reserve Bank of Australia (RBA) aims to keep inflation between 2% and 3% on average over time. This is achieved primarily by setting the official cash rate.

Impact of High Inflation (2022–2023)

Australia experienced elevated inflation of 6–7% in 2022–2023, driven by global supply chain issues, energy costs, and strong domestic demand. The RBA raised interest rates aggressively to bring inflation back within target.

Real vs Nominal Returns

When assessing investments, always consider real (inflation-adjusted) returns. A 5% return during 4% inflation is only a 1% real return. Use the Fisher equation: Real Rate = (1 + Nominal) / (1 + Inflation) − 1.

Wage Growth vs Inflation

The ABS Wage Price Index tracks wage growth separately from CPI. When wages grow slower than inflation, workers experience a real wage decrease — their purchasing power declines even as their nominal wages rise.