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Inflation Adjustment Calculator (AU)

Adjust any amount for inflation in Australia using historical CPI data. Compare purchasing power across years. Free RBA inflation adjustment calculator.

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How Inflation Works in Australia

Inflation erodes purchasing power. At 3% p.a., $100 today buys only $74 in 10 years. The RBA targets 2–3%. Recent CPI: 2022: 7.8%, 2023: 4.1%, 2024: 3.5%. Formula: FV = PV × (1+r)^n. Rule of 72: divide 72 by rate for years to double.

Conservative: 3–3.5%. RBA target: 2–3%. Worst-case: 5%. Historical AU avg: ~2.5%.

If your pay rise is less than CPI, your real purchasing power falls — effectively a pay cut.

This calculator provides estimates only and does not constitute financial advice. Verify results with a qualified professional.