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Deflate nominal AUD to real AUD

Source: R/deflate.R
ato_deflate.Rd

Converts a numeric vector of nominal AUD figures indexed by financial year to real AUD of a chosen base year using the bundled ABS CPI series (annual, All Groups Australia, 2011-12 = 1.0). For the user's inflateR workflow in non-Australian contexts, bundle a matching CPI series and call this with a custom cpi = argument.

Usage

ato_deflate(x, year, base = "2022-23", cpi = NULL)

Arguments

x

Numeric vector of nominal AUD values.

year

Character vector of financial years for each entry in x, in "YYYY-YY" form. Must be the same length as x.

base

Base financial year for real terms (default "2022-23").

cpi

Optional override: a data frame with columns financial_year and cpi_all_groups_australia. Default uses the bundled ABS series.

Value

Numeric vector of real AUD values in base-year prices.

Details

Uses proportional (Laspeyres-style) adjustment: \(real = nominal \times (CPI_{base} / CPI_{source})\). The bundled CPI is the ABS annual All Groups Australia index published in cat. 6401.0, rebased so that 2011-12 = 1.000. This is the standard rebasing used in most Australian time-series work and is consistent with ABS System of National Accounts methodology (cat. 5204.0).

The formula is exact for a chain-linked index after 1949 (when the ABS CPI was introduced) and approximate for earlier values that rely on Commonwealth Statistician retail-price series. Use a custom cpi = argument if you need a different deflator (e.g. GDP deflator, wage price index, or industry-specific PPI).

References

Australian Bureau of Statistics (2024). Consumer Price Index, Australia: Concepts, Sources and Methods. Catalogue 6461.0.

Australian Bureau of Statistics (2024). Consumer Price Index, Australia. Catalogue 6401.0.

Diewert, W.E. (1998). "Index Number Issues in the Consumer Price Index." Journal of Economic Perspectives, 12(1), 47-58. doi:10.1257/jep.12.1.47

See also

Other harmonisation: ato_crosswalk(), ato_harmonise(), ato_per_capita(), ato_reconcile(), ato_schema_map(), ato_to_taxstats()

Examples

ato_deflate(c(100, 100, 100),
            year = c("2012-13", "2017-18", "2022-23"),
            base = "2022-23")
#> [1] 130.6785 119.0860 100.0000