# Australian inflation rate in 2006: 3.49%

\$

## Inflation in 2006 and its effect on dollar value

Purchasing power decreased by 3.49% in 2006 compared to 2005. On average, you would have to spend 3.49% more money in 2006 than in 2005 for the same item.

In other words, \$1 in 2005 is equivalent in purchasing power to about \$1.03 in 2006.

The 2005 inflation rate was 2.72%. The inflation rate in 2006 was 3.49%. The 2006 inflation rate is higher compared to the average inflation rate of 2.23% per year between 2006 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2006 was 85.90. It was 83.00 in the previous year, 2005. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.

 Average inflation rate 3.49% Converted amount (\$1 base) \$1.03 Price difference (\$1 base) \$0.03 CPI in 2005 83.000 CPI in 2006 85.900 Inflation in 2005 2.72% Inflation in 2006 3.49%

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

## How to Calculate Inflation Rate for \$1, 2005 to 2006

Our calculations use the following inflation rate formula to calculate the change in value between 2005 and 2006:

CPI in 2006 CPI in 2005
×
2005 AUD value
=
2006 AUD value

Then plug in historical CPI values. The Australian CPI was 83 in the year 2005 and 85.9 in 2006:

85.983
×
\$1
=
\$1.03

\$1 in 2005 has the same "purchasing power" or "buying power" as \$1.03 in 2006.

To get the total inflation rate for the 1 years between 2005 and 2006, we use the following formula:

CPI in 2006 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

85.9 - 8383
×
100
=
3%

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

• Egyptian President Hosni Mubarak asks Parliament to amend Article 76 and orders constitutional changes in order to allow multi-candidate presidential elections.
• Syria's 29-year-long military domination of Lebanon ends, after it withdraws the last of its 14,000 troops under international pressure.
• A coordinated bomb attack hits London's public transport system, during the morning rush hour, killing 52 and injuring a further 700 people.
• Angela Merkel becomes first female Chancellor of Germany.

## 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 2006 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 2 Jun. 2020, https://www.officialdata.org/Australia-inflation-rate-in-2006.

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

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.

 Average inflation rate 3.49% Converted amount (\$1 base) \$1.03 Price difference (\$1 base) \$0.03 CPI in 2005 83.000 CPI in 2006 85.900 Inflation in 2005 2.72% Inflation in 2006 3.49%