adjust_for_inflation: Convert nominal prices into real prices

In priceR: Economics and Pricing Tools

Convert nominal prices into real prices

Description

Inflate/deflate prices from any year to any year, using World Bank inflation data and assumptions only where necessary. Typically used for converting past (nominal) values into current (real) values. This uses World Bank inflation data where available, but allows for both historical and future assumptions in extrapolation.

Usage

adjust_for_inflation(price, from_date, country, to_date, inflation_dataframe,
countries_dataframe, extrapolate_future_method, future_averaging_period, future_rate,
extrapolate_past_method, past_averaging_period, past_rate)

afi(
  price,
  from_date,
  country,
  to_date,
  inflation_dataframe,
  countries_dataframe,
  extrapolate_future_method,
  future_averaging_period,
  future_rate,
  extrapolate_past_method,
  past_averaging_period,
  past_rate
)

Arguments

price	A price (or prices).
from_date	A date(s) from which the prices will be converted.
country	A country or region in whose currency the prices are denominated.
to_date	A date(s) to which the prices will be converted.
inflation_dataframe	The R object (list) representing the JSON retrieved by calling retrieve_inflation_data().
countries_dataframe	The R object (data.frame) representing the JSON retreived by calling show_countries().
extrapolate_future_method	The extrapolation method that shall be used if extrapolation into the future is required. Options are 'average' or 'rate'.
future_averaging_period	The number of recent periods to average in order to extrapolate forward (if 'average' is method being used).
future_rate	An assumed rate of inflation to use for extrapolating forward (if 'rate' is method being used).
extrapolate_past_method	The extrapolation method that shall be used if extrapolation from the earliest available data to some even earlier period is required.
past_averaging_period	The number of periods back from the earliest available inflation data for a given country to average in order to extrapolate into the past (if 'average' is method being used).
past_rate	An assumed rate of inflation to use for extrapolating from the earliest available data to some even earlier period (if 'rate' is method being used).

Value

A vector of inflation-adjusted prices

Examples

## Not run: 
# Assign these variables once
country <- "AU"
inflation_dataframe <- retrieve_inflation_data(country)
countries_dataframe <- show_countries()

# Convert $100 from 2005 into 2017 dollars

adjust_for_inflation(100, 2005, country, to_date = 2017,
inflation_dataframe = inflation_dataframe,
countries_dataframe = countries_dataframe)

# [1] 133.9861 # i.e. $100 in 2005 had the same purchasing power as $133.99 in 2017

## End(Not run)

priceR documentation built on Oct. 22, 2023, 1:10 a.m.