20141208 - Referential NZD based on CPI (2013e)

 [Technology] [

# Referential NZD

Referential New Zealand dollars (rNZD, r\$) is the real value of the New Zealand dollar (NZD, \$) back in 2010, which is used here as referential currency for better understanding the value of money overtime. The referential dollar is based on the average annual CPI for all groups (estimated from quarter inflation index values provided by the Reserve Bank of New Zealand2). It is calculated by updating the nominal value of the dollar with the appropriate multiplier. The formula for transforming NZD into rNZD follows, while Table 1 provides the correct multiplier (an inflator/deflator multiplier) for the formula.

Formula
rNZD = nominal NZD + (nominal NZD * multiplier)

Table 1. CPI for New Zealand and rNZD multiplier
Year CPI A.Avg Base 2010 multiplier
1900 13.3 1111.0 82.8491
1901 13.7 1111.0 80.3919
1902 14.0 1111.0 78.2157
1903 14.1 1111.0 77.7943
1904 14.0 1111.0 78.2157
1905 14.4 1111.0 76.0191
1906 14.9 1111.0 73.4389
1907 14.9 1111.0 73.4389
1908 14.9 1111.0 73.5638
1909 14.7 1111.0 74.4499
1910 14.8 1111.0 74.0676
1911 14.8 1111.0 74.3220
1912 15.0 1111.0 73.0667
1913 15.4 1111.0 71.1429
1914 15.9 1111.0 68.7645
1915 17.0 1111.0 64.5457
1916 18.3 1111.0 59.8767
1917 20.0 1111.0 54.5500
1918 22.4 1111.0 48.5982
1919 24.8 1111.0 43.8436
1920 28.1 1111.0 38.5022
1921 28.3 1111.0 38.2233
1922 25.4 1111.0 42.8264
1923 25.0 1111.0 43.4845
1924 25.4 1111.0 42.7833
1925 25.5 1111.0 42.5260
1926 25.7 1111.0 42.2296
1927 25.5 1111.0 42.6114
1928 25.6 1111.0 42.4834
1929 25.5 1111.0 42.6542
1930 24.9 1111.0 43.5737
1931 23.0 1111.0 47.3043
1932 21.2 1111.0 51.4057
1933 20.2 1111.0 53.9320
1934 20.5 1111.0 53.1291
1935 21.3 1111.0 51.1596
1936 21.9 1111.0 49.7886
1937 23.4 1111.0 46.4786
1938 24.1 1111.0 45.0996
1939 25.2 1111.0 43.0436
1940 26.3 1111.0 41.2835
1941 27.2 1111.0 39.8081
1942 28.1 1111.0 38.5022
1943 28.8 1111.0 37.5429
1944 29.3 1111.0 36.8858
1945 29.7 1111.0 36.4074
1946 30.0 1111.0 36.0952
1947 30.9 1111.0 34.9256
1948 33.3 1111.0 32.3383
1949 33.9 1111.0 31.7729
1950 35.8 1111.0 30.0119
1951 39.8 1111.0 26.9146
1952 42.9 1111.0 24.9125
1953 44.8 1111.0 23.8130
1954 46.9 1111.0 22.7140
1955 48.1 1111.0 22.1217
1956 49.7 1111.0 21.3429
1957 50.8 1111.0 20.8808
1958 53.1 1111.0 19.9425
1959 55.1 1111.0 19.1633
1960 55.5 1111.0 19.0361
1961 56.5 1111.0 18.6724
1962 58.0 1111.0 18.1717
1963 59.1 1111.0 17.7907
1964 61.2 1111.0 17.1610
1965 63.3 1111.0 16.5583
1966 65.0 1111.0 16.0989
1967 69.0 1111.0 15.1131
1968 71.9 1111.0 14.4466
1969 75.5 1111.0 13.7201
1970 80.4 1111.0 12.8227
1971 88.7 1111.0 11.5289
1972 94.9 1111.0 10.7101
1973 102.6 1111.0 9.8285
1974 114.0 1111.0 8.7456
1975 130.8 1111.0 7.4971
1976 152.9 1111.0 6.2686
1977 174.9 1111.0 5.3540
1978 195.8 1111.0 4.6756
1979 222.6 1111.0 3.9916
1980 260.7 1111.0 3.2612
1981 300.8 1111.0 2.6935
1982 349.4 1111.0 2.1800
1983 375.1 1111.0 1.9623
1984 398.2 1111.0 1.7899
1985 459.6 1111.0 1.4173
1986 520.3 1111.0 1.1352
1987 602.2 1111.0 0.8448
1988 640.6 1111.0 0.7342
1989 677.3 1111.0 0.6405
1990 718.6 1111.0 0.5461
1991 737.3 1111.0 0.5070
1992 744.7 1111.0 0.4918
1993 754.3 1111.0 0.4728
1994 767.5 1111.0 0.4476
1995 796.3 1111.0 0.3952
1996 814.5 1111.0 0.3640
1997 824.2 1111.0 0.3480
1998 834.6 1111.0 0.3312
1999 833.7 1111.0 0.3327
2000 855.5 1111.0 0.2987
2001 877.9 1111.0 0.2655
2002 901.4 1111.0 0.2325
2003 917.2 1111.0 0.2113
2004 938.2 1111.0 0.1842
2005 966.7 1111.0 0.1492
2006 999.3 1111.0 0.1118
2007 1023.0 1111.0 0.0860
2008 1063.5 1111.0 0.0447
2009 1086.0 1111.0 0.0230
2010 1111.0 1111.0 0.0000
2011 1155.8 1111.0 -0.0388
2012 1168.0 1111.0 -0.0488
2013 1181.3 1111.0 -0.0595
2014* 1216.7 1111.0 -0.0869
2015* 1253.2 1111.0 -0.1135
2016* 1290.8 1111.0 -0.1393
2017* 1329.6 1111.0 -0.1644
2018* 1369.5 1111.0 -0.1887
2019* 1410.5 1111.0 -0.2124
2020* 1452.8 1111.0 -0.2353
2021* 1496.4 1111.0 -0.2576
(*Assuming a 3% accumulated inflation rate.)
References
1. PEREZGONZALEZ Jose D (2012). Referential NZD based on CPI (2012e). Knowledge (ISSN 2324-1624), 2013, pages 69-73, doi:10.6084/m9.figshare.706828
2. RESERVE BANK OF NEW ZEALAND (2013). New Zealand inflation calculator. Retrieved from the Reserve Bank of New Zealand on 12 December 2014.
+++ Footnotes +++
3. The 2013 edition updates the 2012 edition1 with the official CPI values for that year.

# Want to know more?

MeasuringWorth
A handy website to learn about different inflation indexes and calculate the value of money according to those indexes.
New Zealand inflation calculator
A handy calculator for estimating the cost of money over time. It allows for calculating inflation per quarter. If you use 2010 as base year, you could interpret the result as referential New Zealand dollars (rNZD, r\$).
WikiofScience - Referential currency (list of topics)
This Wiki of Science page provides a list of topics related to referential currencies.

## Author

Jose D PEREZGONZALEZ (2014). Massey University, Turitea Campus, Private Bag 11-222, Palmerston North 4442, New Zealand. ().

 Other interesting sites
page revision: 1, last edited: 18 Dec 2014 23:15