# Australian inflation rate in 2023: 5.18%

\$

## Inflation in 2023 and its effect on dollar value

\$1 in 2022 is equivalent in purchasing power to about \$1.05 in 2023. The dollar had an average inflation rate of 5.18% per year between 2022 and 2023, producing a cumulative price increase of 5.18%. Purchasing power decreased by 5.18% in 2023 compared to 2022. On average, you would have to spend 5.18% more money in 2023 than in 2022 for the same item.

This means that prices in 2023 are 1.05 times as high as average prices since 2022, according to the Bureau of Statistics consumer price index.

The inflation rate in 2022 was 6.62%. The inflation rate in 2023 was 5.18%.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2023 was 133.90. It was 127.30 in the previous year, 2022. The difference in CPI between the years is used by the Bureau of Statistics to officially determine inflation.

 Average inflation rate 5.18% Converted amount\$1 base \$1.05 Price difference\$1 base \$0.05 CPI in 2022 127.300 CPI in 2023 133.900 Inflation in 2022 6.62% Inflation in 2023 5.18% \$1 in 2022 \$1.05 in 2023

Recent AUD inflation
Annual Rate, the Bureau of Statistics CPI

## How to calculate inflation rate for \$1, 2022 to 2023

Our calculations use the following inflation rate formula to calculate the change in value between 2022 and 2023:

CPI in 2023 CPI in 2022
×
2022 AUD value
=
2023 AUD value

Then plug in historical CPI values. The Australian CPI was 127.3 in the year 2022 and 133.9 in 2023:

133.9127.3
×
\$1
=
\$1.05

\$1 in 2022 has the same "purchasing power" or "buying power" as \$1.05 in 2023.

To get the total inflation rate for the 1 years between 2022 and 2023, we use the following formula:

CPI in 2023 - CPI in 2022CPI in 2022
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

133.9 - 127.3127.3
×
100
=
5%

## 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 2023 | Australia Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Feb. 2024, https://www.officialdata.org/Australia-inflation-rate-in-2023.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.