# Australian inflation rate in 2004: 2.28%

\$

## Inflation in 2004 and its effect on dollar value

Purchasing power decreased by 2.28% in 2004 compared to 2003. On average, you would have to spend 2.28% more money in 2004 than in 2003 for the same item.

In other words, \$1 in 2003 is equivalent in purchasing power to about \$1.02 in 2004.

The 2003 inflation rate was 2.73%. The inflation rate in 2004 was 2.28%. The 2004 inflation rate is lower compared to the average inflation rate of 2.34% per year between 2004 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2004 was 80.80. It was 79.00 in the previous year, 2003. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.

 Average inflation rate 2.28% Converted amount (\$1 base) \$1.02 Price difference (\$1 base) \$0.02 CPI in 2003 79.000 CPI in 2004 80.800 Inflation in 2003 2.73% Inflation in 2004 2.28%

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

## How to Calculate Inflation Rate for \$1, 2003 to 2004

Our calculations use the following inflation rate formula to calculate the change in value between 2003 and 2004:

CPI in 2004 CPI in 2003
×
2003 AUD value
=
2004 AUD value

Then plug in historical CPI values. The Australian CPI was 79 in the year 2003 and 80.8 in 2004:

80.879
×
\$1
=
\$1.02

\$1 in 2003 has the same "purchasing power" or "buying power" as \$1.02 in 2004.

To get the total inflation rate for the 1 years between 2003 and 2004, we use the following formula:

CPI in 2004 - CPI in 2003CPI in 2003
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

80.8 - 7979
×
100
=
2%

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

• Despite a lack of support from the United Nations, a coalition lead by America and Britain invades Iraq.
• Baghdad falls, ending the invasion of Iraq.
• 10 new members are admitted to the European Union after signing the Treaty of Accession in Athens.

## 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: “Inflation Rate in 2004 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 29 May. 2020, https://www.officialdata.org/Australia-inflation-rate-in-2004.