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# Inflation calculator

You can use the inflation calculator to find out what goods and services were worth in today's money when adjusted for inflation and vice versa. For example, find out how much a house worth \$50,000 in 1973 is worth today or what a loaf of bread worth \$4.50 today would have been worth in 1986.

Note

Our inflation calculator will be offline for an upgrade from Friday 12 August 2022. We expect it to be back up and running the week starting Monday 22 August 2022.

Use our inflation calculator

The inflation calculator uses price data, mostly from Stats NZ, to calculate the change in purchasing power of an amount of money between any two points in time between 1862 and the latest available figure.

The consumers price index (CPI) – published by Stats NZ – records the change in the price of a 'basket' of goods and services bought by an average New Zealand household over time. The basket is updated every three years to reflect changing trends.

More simply, the CPI tracks how the prices of everyday things that you buy change over time.

The annual inflation rate is the percentage change between the CPI price level today and one year ago. The inflation calculator allows you to calculate inflation across the entire basket of goods, or subcategories including:

• General – uses the 'all groups' CPI (Stats NZ)
• Food – Food Price Group from the CPI (Stats NZ)
• Clothing – Clothing and Footwear Group from the CPI (Stats NZ)
• Housing – House Price Index (CoreLogic)
• Wages – Hourly wage in dollars (private sector, ordinary time) from Quarterly Employment Survey (Stats NZ)
• Transport – Transport Group from CPI (Stats NZ).

For example, using the food category, you could calculate that a week’s worth of groceries that cost \$250 in 2020, would have only cost around \$158.43 in 2000.

## Use decimals to input data

Did you know that New Zealand didn’t always use dollars and cents? Before adopting the New Zealand dollar (decimalisation) on 10 July 1967, we used pounds, shillings and pence:

• 1 pound = 20 shillings
• 1 shilling = 12 pence
• at decimalisation, £1 = \$2.

The inflation calculator presumes that if a date before July 1967 is selected, then the denomination is pounds not New Zealand dollars.

It only works with decimals, therefore an amount like £5, 11 shillings, and 6 pence needs to be input as 5.575 (£5 + 11.5/20 shillings).

## Data and limitations

CPI inflation and wages data are official data produced by Stats NZ and are only being reproduced in this calculator. The subcategories in the inflation calculator do not necessarily relate to CPI inflation. Refer to the 'About the inflation calculator' section above for more details.

Wages data is published by Stats NZ in the quarterly Labour Market Statistics release. The latest available wages data is sourced from the Quarterly Employment Survey (QES). See the redesign of the quarterly employment survey for information about recent changes to this survey.

While we have included estimates for the years between 1862 and 1914, these should not be seen as official data, or of the same quality as the published CPI. Also, only partial official CPI data exists between 1914 and 1925, so we have inserted interpolated figures for quarters where no official CPI value is available.

Some of the historical series used as inputs into the inflation calculator are available from our Economic Indicators statistics.

Note the inflation calculator may not give a reliable estimate of the prices of assets, such as houses, or individual goods and services where their average prices have changed significantly more or less than the change in the CPI in the specified years.

This Bulletin article discusses the calculator's functionality and gives examples of its uses and limitations:

Read our Bulletin article on the inflation calculator

## Disclaimer

The figures produced by the calculator are offered as guides only and should not be regarded as our ‘official’ calculations. While we have made every effort to ensure the calculations used to generate the calculator's outputs are correct, we accept no liability or responsibility for any errors or for any use to which the resulting figures may be put. The data used before 1914 does not form part of the official CPI and we make no claims as to the accuracy or reliability of these figures.

## Our inflation calculator will be offline

Our inflation calculator will be offline for an upgrade from Friday 12 August 2022. We expect it to be back up and running the week starting Monday 22 August 2022.

### Inflation data

For short run inflation data see the Consumer price index (CPI) on the Stats NZ website.

Go to the Consumers price index (CPI) | Stats NZ

### For expert users

You can manually calculate what the price of goods and services were worth in today’s money when adjusted for inflation by following the following steps:

1. Find the index numbers of the Consumer Price Index for the time periods you are interested in from the Stats NZ Infoshare: Browse - Infoshare - Statistics New Zealand (on the Stats NZ website), CPI All Groups for New Zealand.

Go to Browse - Infoshare - Statistics New Zealand (stats.govt.nz)

2. Calculate how much \$xin year 1 was worth in year 2 (\$x2) with the following equation:

Note: this calculation does not account for the shift from pounds to New Zealand dollars July 1967.