Calculate how inflation erodes purchasing power over time using ABS CPI data. Find the equivalent value of money in any year.
| Scenario | Real value after 10yr |
|---|
The Reserve Bank of Australia (RBA) targets inflation of 2–3% p.a. over the medium term. The ABS measures CPI quarterly across 8 capital cities. In 2022–23, Australian CPI peaked at ~7.8% — the highest in 30+ years.
| Period | Average annual CPI |
|---|---|
| 2024 | ~3.2% |
| 2022–23 (peak) | ~7.0% |
| 2010–2019 | ~2.2% |
| 2000–2009 | ~3.0% |
| Long-run avg (post-1993) | ~2.6% |