$4,000 in 1989 is worth $8,314.02 in 2017

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Value of $4,000 from 1989 to 2017

$4,000 in 1989 is equivalent in purchasing power to about $8,314.02 in 2017, an increase of $4,314.02 over 28 years. The dollar had an average inflation rate of 2.65% per year between 1989 and 2017, producing a cumulative price increase of 107.85%.

This means that prices in 2017 are 2.08 times higher than average prices since 1989, according to the Bureau of Statistics consumer price index.

The 1989 inflation rate was 7.43%. The inflation rate in 2017 was 1.92%. The 2017 inflation rate is higher compared to the average inflation rate of 1.69% per year between 2017 and 2020.


Inflation from 1989 to 2017
Cumulative price change 107.85%
Average inflation rate 2.65%
Converted amount ($4,000 base) $8,314.02
Price difference ($4,000 base) $4,314.02
CPI in 1989 53.500
CPI in 2017 111.200
Inflation in 1989 7.43%
Inflation in 2017 1.92%
$4,000 in 1989 $8,314.02 in 2017

AUD Inflation since 1922
Annual Rate, the Bureau of Statistics CPI
Download

Buying power of $4,000 in 1989

This chart shows a calculation of buying power equivalence for $4,000 in 1989 (price index tracking began in 1922).

For example, if you started with $4,000, you would need to end with $8,314.02 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $4,000 is equivalent to $8,314.02 over time, that means that the "real value" of a single Australian dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1989 dollars, the chart below shows how $4,000 is worth less over 28 years.

According to the Bureau of Statistics, each of these AUD amounts below is equal in terms of what it could buy at the time:

Dollar inflation: 1989-2017
Year Dollar Value Inflation Rate
1989 $4,000.00 7.43%
1990 $4,299.07 7.48%
1991 $4,433.64 3.13%
1992 $4,478.50 1.01%
1993 $4,553.27 1.67%
1994 $4,642.99 1.97%
1995 $4,859.81 4.67%
1996 $4,986.92 2.62%
1997 $5,001.87 0.30%
1998 $5,039.25 0.75%
1999 $5,114.02 1.48%
2000 $5,345.79 4.53%
2001 $5,577.57 4.34%
2002 $5,749.53 3.08%
2003 $5,906.54 2.73%
2004 $6,041.12 2.28%
2005 $6,205.61 2.72%
2006 $6,422.43 3.49%
2007 $6,571.96 2.33%
2008 $6,863.55 4.44%
2009 $6,983.18 1.74%
2010 $7,185.05 2.89%
2011 $7,424.30 3.33%
2012 $7,551.40 1.71%
2013 $7,738.32 2.48%
2014 $7,932.71 2.51%
2015 $8,052.34 1.51%
2016 $8,157.01 1.30%
2017 $8,314.02 1.92%
2018 $8,418.69 1.26%
2019 $8,578.65 1.90%
2020 $8,741.64 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.
Click to show 22 more rows

This conversion table shows various other 1989 amounts in 2017 dollars, based on the 107.85% change in prices:

Conversion: 1989 dollars in 2017
Initial value Equivalent value
$1 dollar in 1989 $2.08 dollars in 2017
$5 dollars in 1989 $10.39 dollars in 2017
$10 dollars in 1989 $20.79 dollars in 2017
$50 dollars in 1989 $103.93 dollars in 2017
$100 dollars in 1989 $207.85 dollars in 2017
$500 dollars in 1989 $1,039.25 dollars in 2017
$1,000 dollars in 1989 $2,078.50 dollars in 2017
$5,000 dollars in 1989 $10,392.52 dollars in 2017
$10,000 dollars in 1989 $20,785.05 dollars in 2017
$50,000 dollars in 1989 $103,925.23 dollars in 2017
$100,000 dollars in 1989 $207,850.47 dollars in 2017
$500,000 dollars in 1989 $1,039,252.34 dollars in 2017
$1,000,000 dollars in 1989 $2,078,504.67 dollars in 2017

How to Calculate Inflation Rate for $4,000, 1989 to 2017

Our calculations use the following inflation rate formula to calculate the change in value between 1989 and 2017:

CPI in 2017 CPI in 1989
×
1989 AUD value
=
2017 AUD value

Then plug in historical CPI values. The Australian CPI was 53.5 in the year 1989 and 111.2 in 2017:

111.253.5
×
$4,000
=
$8,314.02

$4,000 in 1989 has the same "purchasing power" or "buying power" as $8,314.02 in 2017.

To get the total inflation rate for the 28 years between 1989 and 2017, we use the following formula:

CPI in 2017 - CPI in 1989CPI in 1989
×
100
=
Cumulative inflation rate (28 years)

Plugging in the values to this equation, we get:

111.2 - 53.553.5
×
100
=
108%

News headlines from 1989

Politics and news often influence economic performance. Here's what was happening at the time:

  • Chinese troops kill thousands of students protesting at Tiananmen Square.
  • The first (partially) free elections take place in Poland, bringing democracy to Eastern Europe for the first time in 40 years. (Won by the Solidarity Party)
  • The demolition of the Berlin Wall begins.
  • Presidents George H. W. Bush and Mikhail Gorbachev declare that the Cold War has ended.

Data Source & Citation

Raw data for these calculations comes from the government of Australia's annual (CPI) as provided by the Reserve Bank of Australia. The consumer price index was established in 1922 and is tracked by Australian Bureau of Statistics (ABS).

You may use the following MLA citation for this page: “$4,000 in 1989 → 2017 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 7 Mar. 2021, https://www.officialdata.org/1989-AUD-in-2017?amount=4000.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

in2013dollars.com is a reference website maintained by the Official Data Foundation.


Ian Webster

About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

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Inflation from 1989 to 2017
Cumulative price change 107.85%
Average inflation rate 2.65%
Converted amount ($4,000 base) $8,314.02
Price difference ($4,000 base) $4,314.02
CPI in 1989 53.500
CPI in 2017 111.200
Inflation in 1989 7.43%
Inflation in 2017 1.92%
$4,000 in 1989 $8,314.02 in 2017