# Value of 1988 New Zealand Dollars today

\$100 in 1988

\$206.1 in 2020

The inflation rate in New Zealand between 1988 and today has been 106.1%, which translates into a total increase of \$106.1. This means that 100 dollars in 1988 are equivalent to 206.1 dollars in 2020. In other words, the purchasing power of \$100 in 1988 equals \$206.1 today. The average annual inflation rate has been 2.22%.

## Inflation timeline in New Zealand (1988-2020)

The following chart depicts the equivalence of \$100 throughout the years due to inflation and CPI changes. All values are equivalent in terms of purchasing 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 (NZD) 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 (1988-2020) 106.06%
Total Inflation* 106.1%
Annual inflation avg. (1988-2020) 2.29%
Annual inflation avg.* 2.22%
CPI 1988 51.79
CPI 2020 106.73
CPI today* 106.75
\$1 in 1988 \$2.06 in 2020

* 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 with 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 32 years between 1988 and 2020 and the average inflation rate has been 2.2157%. Therefore, we can resolve the formula like this:

FV = PV (1 + i)n = \$100 * (1 + 0.02)32 = \$206.06

#### 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 1988 was 51.79 and the CPI today is 106.75. Therefore,

Final value = Initial value *
CPI final/CPI initial
= \$100 *
106.73/51.79
= \$206.06

### New Zealand inflation - Conversion table

Initial Value Equivalent value
\$1 dollar in 1988 \$2.06 dollars today
\$5 dollars in 1988 \$10.31 dollars today
\$10 dollars in 1988 \$20.61 dollars today
\$50 dollars in 1988 \$103.05 dollars today
\$100 dollars in 1988 \$206.1 dollars today
\$500 dollars in 1988 \$1,030.52 dollars today
\$1,000 dollars in 1988 \$2,061.05 dollars today
\$5,000 dollars in 1988 \$10,305.24 dollars today
\$10,000 dollars in 1988 \$20,610.48 dollars today
\$50,000 dollars in 1988 \$103,052.38 dollars today
\$100,000 dollars in 1988 \$206,104.76 dollars today
\$500,000 dollars in 1988 \$1,030,523.8 dollars today
\$1,000,000 dollars in 1988 \$2,061,047.59 dollars today

Period Value
1988 100
1989 104.71
1990 112.25
1991 117.7
1992 118.85
1993 120.42
1994 122.09
1995 125.51
1996 129.18
1997 132.47
1998 133.57
1999 134.06
2000 134.74
2001 140.1
2002 142.64
2003 146.53
2004 148.8
2005 152.82
2006 157.64
2007 161.8
2008 166.95
2009 172.58
2010 175.97
2011 183.05
2012 186.43
2013 188.2
2014 191.26
2015 192.71
2016 192.87
2017 195.45
2018 198.56
2019 202.31
2020 206.06
Today 206.1