The CPI tracks the price of a fixed basket — food, housing, transport, health, recreation — across the eight capital cities. Since 1949 that basket's price has multiplied roughly 37 times: a pound-era pantry shop that cost $10 at mid-century costs around $370 now.
The damage wasn't evenly spread. The 1970s and early 80s did most of it — inflation averaged over 10% for stretches, and prices tripled in a decade. Since the RBA adopted its 2–3% target in 1993, the average has been about 2.7%, with the post-COVID spike to 7.8% in 2022 the only major breach.
For planning, the forward view matters more than the history: at 3% inflation, money halves in purchasing power every ~24 years. A retirement 25 years away priced in today's dollars will cost roughly double in nominal terms — which is why long-term projections (super, FIRE numbers, pension adequacy) should always be read in real, inflation-adjusted dollars.
This calculator uses the June-quarter CPI level of each year, so figures line up with financial-year indexation. It measures consumer prices — house prices, wages and shares have their own, mostly faster, trajectories.