Referential NZD based on CPI (2013e)

Referential currency (list of topics) » 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
rNZD = nominal NZD * value multiplier	= value of money throughout time, with base 2010 (= 1111.0/CPI)
currency equivalence = nominal NZD * currency multiplier	= 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.

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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]

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Author

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

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.