# \$1 in 2005 is worth \$0.93 in 2002

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## Value of \$1 from 2005 to 2002

\$1 in 2005 is equivalent in purchasing power to about \$0.93 in 2002, an increase of \$-0.07 over 3 years. The dollar had an average inflation rate of 2.58% per year between 2002 and 2005, producing a cumulative price increase of -7.35%.

This means that prices in 2002 are 7.35% lower than average prices since 2005, according to the Bureau of Statistics consumer price index.

The 2002 inflation rate was 3.08%. The inflation rate in 2005 was 2.72%. The 2005 inflation rate is higher compared to the average inflation rate of 2.22% per year between 2005 and 2021.

 Cumulative price change -7.35% Average inflation rate 2.58% Converted amount (\$1 base) \$0.93 Price difference (\$1 base) \$-0.07 CPI in 2005 83.000 CPI in 2002 76.900 Inflation in 2002 3.08% Inflation in 2005 2.72% \$1 in 2005 \$0.93 in 2002

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

## Buying power of \$1 in 2002

This chart shows a calculation of buying power equivalence for \$1 in 2002 (price index tracking began in 1922).

For example, if you started with \$1, you would need to end with \$0.93 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.93 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 2002 dollars, the chart below shows how \$1 is worth less over 3 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: 2002-2005
Year Dollar Value Inflation Rate
2002 \$1.00 3.08%
2003 \$1.03 2.73%
2004 \$1.05 2.28%
2005 \$1.08 2.72%
2006 \$1.12 3.49%
2007 \$1.14 2.33%
2008 \$1.19 4.44%
2009 \$1.21 1.74%
2010 \$1.25 2.89%
2011 \$1.29 3.33%
2012 \$1.31 1.71%
2013 \$1.35 2.48%
2014 \$1.38 2.51%
2015 \$1.40 1.51%
2016 \$1.42 1.30%
2017 \$1.45 1.92%
2018 \$1.47 1.89%
2019 \$1.50 1.59%
2020 \$1.51 0.87%
2021 \$1.53 1.55%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2002 amounts in 2005 dollars, based on the -7.35% change in prices:

Conversion: 2002 dollars in 2005
Initial value Equivalent value
\$1 dollar in 2002 \$1.08 dollars in 2005
\$5 dollars in 2002 \$5.40 dollars in 2005
\$10 dollars in 2002 \$10.79 dollars in 2005
\$50 dollars in 2002 \$53.97 dollars in 2005
\$100 dollars in 2002 \$107.93 dollars in 2005
\$500 dollars in 2002 \$539.66 dollars in 2005
\$1,000 dollars in 2002 \$1,079.32 dollars in 2005
\$5,000 dollars in 2002 \$5,396.62 dollars in 2005
\$10,000 dollars in 2002 \$10,793.24 dollars in 2005
\$50,000 dollars in 2002 \$53,966.19 dollars in 2005
\$100,000 dollars in 2002 \$107,932.38 dollars in 2005
\$500,000 dollars in 2002 \$539,661.90 dollars in 2005
\$1,000,000 dollars in 2002 \$1,079,323.80 dollars in 2005

## How to Calculate Inflation Rate for \$1, 2002 to 2005

Our calculations use the following inflation rate formula to calculate the change in value between 2002 and 2005:

CPI in 2002 CPI in 2005
×
2005 AUD value
=
2002 AUD value

Then plug in historical CPI values. The Australian CPI was 83 in the year 2005 and 76.9 in 2002:

76.983
×
\$1
=
\$0.93

\$1 in 2005 has the same "purchasing power" or "buying power" as \$0.93 in 2002.

To get the total inflation rate for the 3 years between 2002 and 2005, we use the following formula:

CPI in 2002 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

76.9 - 8383
×
100
=
-7%

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: “\$1 in 2005 → 2002 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 23 Jun. 2021, https://www.officialdata.org/australia/inflation/2005?amount=1&endYear=2002.

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.