# \$1 in 1998 is worth \$0.94 in 1998

\$

## Value of \$1 from 2000 to 1998

According to the Bureau of Statistics consumer price index, prices in 1998 are 5.73% lower than average prices since 2000. The Australian dollar experienced an average inflation rate of 3.00% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 2000 is equivalent in purchasing power to about \$0.94 in 1998, a difference of \$-0.06 over 2 years.

The 1998 inflation rate was 0.75%. The inflation rate in 2000 was 4.53%. The 2000 inflation rate is higher compared to the average inflation rate of 2.49% per year between 2000 and 2020.

 Cumulative price change -5.73% Average inflation rate 3.00% Converted amount (\$1 base) \$0.94 Price difference (\$1 base) \$-0.06 CPI in 2000 71.500 CPI in 1998 67.400 Inflation in 1998 0.75% Inflation in 2000 4.53%

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

## Buying power of \$1 in 1998

This chart shows a calculation of buying power equivalence for \$1 in 1998 (price index tracking began in 1922).

For example, if you started with \$1, you would need to end with \$0.94 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.94 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 1998 dollars, the chart below shows how \$1 is worth less over 2 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: 1998-2000
Year Dollar Value Inflation Rate
1998 \$1.00 0.75%
1999 \$1.01 1.48%
2000 \$1.06 4.53%
2001 \$1.11 4.34%
2002 \$1.14 3.08%
2003 \$1.17 2.73%
2004 \$1.20 2.28%
2005 \$1.23 2.72%
2006 \$1.27 3.49%
2007 \$1.30 2.33%
2008 \$1.36 4.44%
2009 \$1.39 1.74%
2010 \$1.43 2.89%
2011 \$1.47 3.33%
2012 \$1.50 1.71%
2013 \$1.54 2.48%
2014 \$1.57 2.51%
2015 \$1.60 1.51%
2016 \$1.62 1.30%
2017 \$1.65 1.92%
2018 \$1.67 1.26%
2019 \$1.70 1.90%
2020 \$1.73 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1998 amounts in 2000 dollars, based on the -5.73% change in prices:

Conversion Table: Value of a dollar in 2000
Initial value Equivalent value
\$1 dollar in 1998 \$1.06 dollars in 2000
\$5 dollars in 1998 \$5.30 dollars in 2000
\$10 dollars in 1998 \$10.61 dollars in 2000
\$50 dollars in 1998 \$53.04 dollars in 2000
\$100 dollars in 1998 \$106.08 dollars in 2000
\$500 dollars in 1998 \$530.42 dollars in 2000
\$1,000 dollars in 1998 \$1,060.83 dollars in 2000
\$5,000 dollars in 1998 \$5,304.15 dollars in 2000
\$10,000 dollars in 1998 \$10,608.31 dollars in 2000
\$50,000 dollars in 1998 \$53,041.54 dollars in 2000
\$100,000 dollars in 1998 \$106,083.09 dollars in 2000
\$500,000 dollars in 1998 \$530,415.43 dollars in 2000
\$1,000,000 dollars in 1998 \$1,060,830.86 dollars in 2000

## How to Calculate Inflation Rate for \$1, 1998 to 2000

Our calculations use the following inflation rate formula to calculate the change in value between 1998 and 2000:

CPI in 1998 CPI in 2000
×
2000 AUD value
=
1998 AUD value

Then plug in historical CPI values. The Australian CPI was 71.5 in the year 2000 and 67.4 in 1998:

67.471.5
×
\$1
=
\$0.94

\$1 in 2000 has the same "purchasing power" or "buying power" as \$0.94 in 1998.

To get the total inflation rate for the 2 years between 1998 and 2000, we use the following formula:

CPI in 1998 - CPI in 2000CPI in 2000
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

67.4 - 71.571.5
×
100
=
-6%

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

• Steve Ballmer becomes CEO of Microsoft after Bill Gates steps down.
• Dot-com bubble bursts after NASDAQ Composite stock market index peaks.
• George Bush becomes President of the U.S. in a disputed election that is eventually resolved by the Supreme Court.
• Gisborne, New Zealand becomes the first city to enter the new millennium.

## 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: “\$1 in 2000 → 1998 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 May. 2020, https://www.officialdata.org/australia/inflation/2000?amount=1&endYear=1998.

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.

 Cumulative price change -5.73% Average inflation rate 3.00% Converted amount (\$1 base) \$0.94 Price difference (\$1 base) \$-0.06 CPI in 2000 71.500 CPI in 1998 67.400 Inflation in 1998 0.75% Inflation in 2000 4.53%