# \$1 in 2010 is worth \$0.89 in 2006

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## Value of \$1 from 2010 to 2006

\$1 in 2010 is equivalent in purchasing power to about \$0.89 in 2006, an increase of \$-0.11 over 4 years. The dollar had an average inflation rate of 2.84% per year between 2006 and 2010, producing a cumulative price increase of -10.61%.

This means that prices in 2006 are 10.61% lower than average prices since 2010, according to the Bureau of Statistics consumer price index.

The 2006 inflation rate was 3.49%. The inflation rate in 2010 was 2.89%. The 2010 inflation rate is higher compared to the average inflation rate of 1.98% per year between 2010 and 2020.

 Cumulative price change -10.61% Average inflation rate 2.84% Converted amount (\$1 base) \$0.89 Price difference (\$1 base) \$-0.11 CPI in 2010 96.100 CPI in 2006 85.900 Inflation in 2006 3.49% Inflation in 2010 2.89% \$1 in 2010 \$0.89 in 2006

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

## Buying power of \$1 in 2006

This chart shows a calculation of buying power equivalence for \$1 in 2006 (price index tracking began in 1922).

For example, if you started with \$1, you would need to end with \$0.89 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.89 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 2006 dollars, the chart below shows how \$1 is worth less over 4 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: 2006-2010
Year Dollar Value Inflation Rate
2006 \$1.00 3.49%
2007 \$1.02 2.33%
2008 \$1.07 4.44%
2009 \$1.09 1.74%
2010 \$1.12 2.89%
2011 \$1.16 3.33%
2012 \$1.18 1.71%
2013 \$1.20 2.48%
2014 \$1.24 2.51%
2015 \$1.25 1.51%
2016 \$1.27 1.30%
2017 \$1.29 1.92%
2018 \$1.31 1.26%
2019 \$1.34 1.90%
2020 \$1.36 1.90%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2006 amounts in 2010 dollars, based on the -10.61% change in prices:

Conversion: 2006 dollars in 2010
Initial value Equivalent value
\$1 dollar in 2006 \$1.12 dollars in 2010
\$5 dollars in 2006 \$5.59 dollars in 2010
\$10 dollars in 2006 \$11.19 dollars in 2010
\$50 dollars in 2006 \$55.94 dollars in 2010
\$100 dollars in 2006 \$111.87 dollars in 2010
\$500 dollars in 2006 \$559.37 dollars in 2010
\$1,000 dollars in 2006 \$1,118.74 dollars in 2010
\$5,000 dollars in 2006 \$5,593.71 dollars in 2010
\$10,000 dollars in 2006 \$11,187.43 dollars in 2010
\$50,000 dollars in 2006 \$55,937.14 dollars in 2010
\$100,000 dollars in 2006 \$111,874.27 dollars in 2010
\$500,000 dollars in 2006 \$559,371.36 dollars in 2010
\$1,000,000 dollars in 2006 \$1,118,742.72 dollars in 2010

## How to Calculate Inflation Rate for \$1, 2006 to 2010

Our calculations use the following inflation rate formula to calculate the change in value between 2006 and 2010:

CPI in 2006 CPI in 2010
×
2010 AUD value
=
2006 AUD value

Then plug in historical CPI values. The Australian CPI was 96.1 in the year 2010 and 85.9 in 2006:

85.996.1
×
\$1
=
\$0.89

\$1 in 2010 has the same "purchasing power" or "buying power" as \$0.89 in 2006.

To get the total inflation rate for the 4 years between 2006 and 2010, we use the following formula:

CPI in 2006 - CPI in 2010CPI in 2010
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

85.9 - 96.196.1
×
100
=
-11%

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

• The Copiapo mining accident in Chile ends, after 33 miners resurface having spent 69 days trapped in the ruins.
• Big Haiti earthquake kills 230,000 people and leaves most of Port-au-Prince, its capital, in ruins.
• An explosion on the Deepwater Horizon (a drilling rig), kills 11 people and spills a massive amount of oil into the Gulf of Mexico.
• The US army abolishes the "Don't Ask Don't Tell" policy, which had banned homosexuals from openly serving in the US military.

## 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 2010 → 2006 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Jan. 2021, https://www.officialdata.org/australia/inflation/2010?amount=1&endYear=2006.

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.