Value of 1989 Australian Dollars today

$100 in 1989

$221.68 in 2018

The inflation rate in Australia between 1989 and today has been 121.68%, which translates into a total increase of $121.68. This means that 100 dolars in 1989 are equivalent to 221.68 dolars in 2018. In other words, the purchasing power of $100 in 1989 equals $221.68 today. The average annual inflation rate has been 2.69%.

Inflation timeline in Australia (1989-2018)

The following chart ilustrates the equivalence of $100 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchashing power, which means that for each year the same goods or services could be bought with the indicated amount of money.

All calculations are performed in the local currency (AUD) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability. Inflation data is provided by governments and international institutions on a monthly basis. Today's values were obtained by estimating figures from recent trends.

The following table contains relevant indicators:

Indicator Value
Total Inflation (1989-2018) 118.95%
Total Inflation* 121.68%
Annual inflation avg. (1989-2018) 2.74%
Annual inflation avg.* 2.69%
CPI 1989 47.55
CPI 2018 104.11
CPI today* 105.41
$1 in 1989 $2.19 in 2018

* Values extrapolated from the last official data to obtain today's values.

How to calculate today's value of money after inflation?

There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the compound interest formula or the Consumer Price Index (CPI) formula.

Using the compound interest formula

Given that money changes in time as a result of an inflation rate that acts as a compound interest, the following formula can be used: FV = PV (1 + i)n, where:

  • FV: Future Value
  • PV: Present Value
  • i: Interest rate (inflation)
  • n: Number of times the interest is compounded (i.e. # of years)

In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, it indicates how much are $100 worth today. There are 29 years between 1989 and 2018 and the average inflation rate has been 2.6891%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = $100 * (1 + 0.03)29 = $218.95

Using the CPI formula

When the CPI for both start and end years is known, the following formula can be used:

Final value = Initial value *
CPI final/CPI initial

In this case, the CPI in 1989 was 47.55 and the CPI today is 105.41. Therefore,

Final value = Initial value *
CPI final/CPI initial
= $100 *
104.11/47.55
= $218.95

Australia inflation - Conversion table

Initial Value Equivalent value
$1 dollar in 1989 $2.22 dolars today
$5 dolars in 1989 $11.08 dolars today
$10 dolars in 1989 $22.17 dolars today
$50 dolars in 1989 $110.84 dolars today
$100 dolars in 1989 $221.68 dolars today
$500 dolars in 1989 $1,108.4 dolars today
$1,000 dolars in 1989 $2,216.81 dolars today
$5,000 dolars in 1989 $11,084.04 dolars today
$10,000 dolars in 1989 $22,168.08 dolars today
$50,000 dolars in 1989 $110,840.39 dolars today
$100,000 dolars in 1989 $221,680.78 dolars today
$500,000 dolars in 1989 $1,108,403.91 dolars today
$1,000,000 dolars in 1989 $2,216,807.82 dolars today

Value of Dollar in time (by year)

Period Value
1989 100
1990 107.81
1991 115.23
1992 116.99
1993 117.38
1994 119.53
1995 122.66
1996 128.91
1997 130.86
1998 130.47
1999 132.42
2000 134.96
2001 142.77
2002 147.27
2003 151.56
2004 155.27
2005 159.18
2006 163.67
2007 169.14
2008 174.02
2009 180.47
2010 184.18
2011 189.26
2012 194.92
2013 199.22
2014 204.69
2015 208.2
2016 211.72
2017 214.84
2018 218.95
Today 221.68