Referential NZD based on CPI (2013e)

 Note: This article is being updated. For the officially published article, go to: PEREZGONZALEZ Jose D (2013). Referential NZD based on CPI (2013e)3. Knowledge (ISSN 2324-1624), 2014, pages 15-19.] [DOI] [Printer friendly]

# Referential NZD

The Referential New Zealand dollar (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 formulas for transforming NZD into rNZD (and vice versa) follow, while Table 1 provides the correct multipliers (an inflator/deflator multiplier) for each formula.

Formulas = value of money throughout time, with base 2010 (= 1111.0/CPI) = equivalent currency throughout time, with base 2010 (= CPI/1111.0)

Table 1. CPI for New Zealand and rNZD multiplier
Year CPI A.Avg Base 2010 value multiplier (r\$) currency multiplier (\$)
1900 13.3 1111.0 83.8491 0.0119
1901 13.7 1111.0 81.3919 0.0123
1902 14.0 1111.0 79.2157 0.0126
1903 14.1 1111.0 78.7943 0.0127
1904 14.0 1111.0 79.2157 0.0126
1905 14.4 1111.0 77.0191 0.0130
1906 14.9 1111.0 74.4389 0.0134
1907 14.9 1111.0 74.4389 0.0134
1908 14.9 1111.0 74.5638 0.0134
1909 14.7 1111.0 75.4499 0.0133
1910 14.8 1111.0 75.0676 0.0133
1911 14.8 1111.0 75.3220 0.0133
1912 15.0 1111.0 74.0667 0.0135
1913 15.4 1111.0 72.1429 0.0139
1914 15.9 1111.0 69.7645 0.0143
1915 17.0 1111.0 65.5457 0.0153
1916 18.3 1111.0 60.8767 0.0164
1917 20.0 1111.0 55.5500 0.0180
1918 22.4 1111.0 49.5982 0.0202
1919 24.8 1111.0 44.8436 0.0223
1920 28.1 1111.0 39.5022 0.0253
1921 28.3 1111.0 39.2233 0.0255
1922 25.4 1111.0 43.8264 0.0228
1923 25.0 1111.0 44.4845 0.0225
1924 25.4 1111.0 43.7833 0.0228
1925 25.5 1111.0 43.5260 0.0230
1926 25.7 1111.0 43.2296 0.0231
1927 25.5 1111.0 43.6114 0.0229
1928 25.6 1111.0 43.4834 0.0230
1929 25.5 1111.0 43.6542 0.0229
1930 24.9 1111.0 44.5737 0.0224
1931 23.0 1111.0 48.3043 0.0207
1932 21.2 1111.0 52.4057 0.0191
1933 20.2 1111.0 54.9320 0.0182
1934 20.5 1111.0 54.1291 0.0185
1935 21.3 1111.0 52.1596 0.0192
1936 21.9 1111.0 50.7886 0.0197
1937 23.4 1111.0 47.4786 0.0211
1938 24.1 1111.0 46.0996 0.0217
1939 25.2 1111.0 44.0436 0.0227
1940 26.3 1111.0 42.2835 0.0236
1941 27.2 1111.0 40.8081 0.0245
1942 28.1 1111.0 39.5022 0.0253
1943 28.8 1111.0 38.5429 0.0259
1944 29.3 1111.0 37.8858 0.0264
1945 29.7 1111.0 37.4074 0.0267
1946 30.0 1111.0 37.0952 0.0270
1947 30.9 1111.0 35.9256 0.0278
1948 33.3 1111.0 33.3383 0.0300
1949 33.9 1111.0 32.7729 0.0305
1950 35.8 1111.0 31.0119 0.0322
1951 39.8 1111.0 27.9146 0.0358
1952 42.9 1111.0 25.9125 0.0386
1953 44.8 1111.0 24.8130 0.0403
1954 46.9 1111.0 23.7140 0.0422
1955 48.1 1111.0 23.1217 0.0432
1956 49.7 1111.0 22.3429 0.0448
1957 50.8 1111.0 21.8808 0.0457
1958 53.1 1111.0 20.9425 0.0477
1959 55.1 1111.0 20.1633 0.0496
1960 55.5 1111.0 20.0361 0.0499
1961 56.5 1111.0 19.6724 0.0508
1962 58.0 1111.0 19.1717 0.0522
1963 59.1 1111.0 18.7907 0.0532
1964 61.2 1111.0 18.1610 0.0551
1965 63.3 1111.0 17.5583 0.0570
1966 65.0 1111.0 17.0989 0.0585
1967 69.0 1111.0 16.1131 0.0621
1968 71.9 1111.0 15.4466 0.0647
1969 75.5 1111.0 14.7201 0.0679
1970 80.4 1111.0 13.8227 0.0723
1971 88.7 1111.0 12.5289 0.0798
1972 94.9 1111.0 11.7101 0.0854
1973 102.6 1111.0 10.8285 0.0923
1974 114.0 1111.0 9.7456 0.1026
1975 130.8 1111.0 8.4971 0.1177
1976 152.9 1111.0 7.2686 0.1376
1977 174.9 1111.0 6.3540 0.1574
1978 195.8 1111.0 5.6756 0.1762
1979 222.6 1111.0 4.9916 0.2003
1980 260.7 1111.0 4.2612 0.2347
1981 300.8 1111.0 3.6935 0.2707
1982 349.4 1111.0 3.1800 0.3145
1983 375.1 1111.0 2.9623 0.3376
1984 398.2 1111.0 2.7899 0.3584
1985 459.6 1111.0 2.4173 0.4137
1986 520.3 1111.0 2.1352 0.4683
1987 602.2 1111.0 1.8448 0.5421
1988 640.6 1111.0 1.7342 0.5766
1989 677.3 1111.0 1.6405 0.6096
1990 718.6 1111.0 1.5461 0.6468
1991 737.3 1111.0 1.5070 0.6636
1992 744.7 1111.0 1.4918 0.6703
1993 754.3 1111.0 1.4728 0.6790
1994 767.5 1111.0 1.4476 0.6908
1995 796.3 1111.0 1.3952 0.7167
1996 814.5 1111.0 1.3640 0.7331
1997 824.2 1111.0 1.3480 0.7418
1998 834.6 1111.0 1.3312 0.7512
1999 833.7 1111.0 1.3327 0.7504
2000 855.5 1111.0 1.2987 0.7700
2001 877.9 1111.0 1.2655 0.7902
2002 901.4 1111.0 1.2325 0.8114
2003 917.2 1111.0 1.2113 0.8256
2004 938.2 1111.0 1.1842 0.8445
2005 966.7 1111.0 1.1492 0.8701
2006 999.3 1111.0 1.1118 0.8994
2007 1023.0 1111.0 1.0860 0.9208
2008 1063.5 1111.0 1.0447 0.9572
2009 1086.0 1111.0 1.0230 0.9775
2010 1111.0 1111.0 1.0000 1.0000
2011 1155.8 1111.0 0.9612 1.0403
2012 1168.0 1111.0 0.9512 1.0513
2013 1181.3 1111.0 0.9405 1.0633
2014 1195.8 1111.0 0.9291 1.0763
2015 1199.3 1111.0 0.9264 1.0794
2016* 1235.2 1111.0 0.8994 1.1118
2017* 1272.3 1111.0 0.8732 1.1452
2018* 1310.5 1111.0 0.8478 1.1795
2019* 1349.8 1111.0 0.8231 1.2149
2020* 1390.3 1111.0 0.7991 1.2514
2021* 1432.0 1111.0 0.7759 1.2889
(*Assuming a 3% accumulated inflation rate.)

For example, a salary of \$10,000 back in 1972 had the same purchasing power (ie, value) than a salary of \$117,101 in 2010 (= \$10,000 * 11.7101). And a salary of \$40,000 in 2014 had the same purchasing power than salary of \$37,164 in 2010. Thus, a person earning \$10,000 in 1972 was actually better off than a person earning \$40,000 in 2014.

On the other hand, the currency equivalence of a purchasing power of r\$40,000 in 2010 was \$3,416 in 1972 (= r\$40,000 * 0.0854). That is, whatever was worth \$40,000 in 2010 could have been bought with \$3,416 back in 1972.

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 (2016). New Zealand inflation calculator. Retrieved from the Reserve Bank of New Zealand on 25 July 2016.
+++ Footnotes +++
3. The 2015 edition updates the 2013 edition1 with the official CPI values for that year.

### Outdated versions

PEREZGONZALEZ Jose D (2010). Referential NZD based on CPI. Journal of Knowledge Advancement & Integration (ISSN 1177-4576), 2011, pages 113-117.
PEREZGONZALEZ Jose D (2011). Referential NZD based on CPI (2011e). Journal of Knowledge Advancement & Integration (ISSN 1177-4576), 2012, pages 123-127.
PEREZGONZALEZ Jose D (2012). Referential NZD based on CPI (2012e). Knowledge (ISSN 2324-1624), 2013, pages 69-73, doi:10.6084/m9.figshare.706828
PEREZGONZALEZ Jose D (2015). Referential NZD based on CPI (2013e). Knowledge (ISSN 2324-1624), 2014, pages 15-19, [http://dx.doi.org/10.6084/m9.figshare.1274028]

## Author

Jose D PEREZGONZALEZ (2016). Massey University, Turitea Campus, Private Bag 11-222, Palmerston North 4442, New Zealand. ().

# Want to know more?

MeasuringWorth
A handy website to learn about different inflation indexes and calculate the value of money according to those indexes.
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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\$).
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page revision: 29, last edited: 25 Jul 2016 02:35