% Generated by roxygen2: do not edit by hand
% Please edit documentation in R/deflate.R
\name{ato_deflate}
\alias{ato_deflate}
\title{Deflate nominal AUD to real AUD}
\usage{
ato_deflate(x, year, base = "2022-23", cpi = NULL)
}
\arguments{
\item{x}{Numeric vector of nominal AUD values.}

\item{year}{Character vector of financial years for each entry
in \code{x}, in \code{"YYYY-YY"} form. Must be the same length as \code{x}.}

\item{base}{Base financial year for real terms (default
\code{"2022-23"}).}

\item{cpi}{Optional override: a data frame with columns
\code{financial_year} and \code{cpi_all_groups_australia}. Default
uses the bundled ABS series.}
}
\value{
Numeric vector of real AUD values in base-year prices.
}
\description{
Converts a numeric vector of nominal AUD figures indexed by
financial year to real AUD of a chosen base year using the
bundled ABS CPI series (annual, All Groups Australia,
2011-12 = 1.0). For the user's \code{inflateR} workflow in
non-Australian contexts, bundle a matching CPI series and
call this with a custom \verb{cpi =} argument.
}
\details{
Uses proportional (Laspeyres-style) adjustment:
\eqn{real = nominal \times (CPI_{base} / CPI_{source})}. The
bundled CPI is the ABS annual All Groups Australia index
published in cat. 6401.0, rebased so that 2011-12 = 1.000.
This is the standard rebasing used in most Australian
time-series work and is consistent with ABS System of National
Accounts methodology (cat. 5204.0).

The formula is exact for a chain-linked index after 1949 (when
the ABS CPI was introduced) and approximate for earlier values
that rely on Commonwealth Statistician retail-price series. Use
a custom \verb{cpi =} argument if you need a different deflator
(e.g. GDP deflator, wage price index, or industry-specific PPI).
}
\examples{
ato_deflate(c(100, 100, 100),
            year = c("2012-13", "2017-18", "2022-23"),
            base = "2022-23")
}
\references{
Australian Bureau of Statistics (2024). \emph{Consumer Price
Index, Australia: Concepts, Sources and Methods}. Catalogue
6461.0.

Australian Bureau of Statistics (2024). \emph{Consumer Price
Index, Australia}. Catalogue 6401.0.

Diewert, W.E. (1998). "Index Number Issues in the Consumer Price
Index." \emph{Journal of Economic Perspectives}, 12(1),
47-58. \doi{10.1257/jep.12.1.47}
}
\seealso{
Other harmonisation: 
\code{\link{ato_crosswalk}()},
\code{\link{ato_harmonise}()},
\code{\link{ato_per_capita}()},
\code{\link{ato_reconcile}()},
\code{\link{ato_schema_map}()},
\code{\link{ato_to_taxstats}()}
}
\concept{harmonisation}
