Inflation using the Wage Price Index.

Source: R/wage_inflator.R

Predicts the inflation of hourly rates of pay, between two financial years.

wage_inflator(wage = 1, from_fy = NULL, to_fy = NULL,
  useABSConnection = FALSE, allow.projection = TRUE,
  forecast.series = c("mean", "upper", "lower", "custom"),
  forecast.level = 95, wage.series = NULL,
  accelerate.above = 100000L)

Arguments

wage

The amount to be inflated (1 by default).
from_fy, to_fy

(character) a character vector with each element in the form "2012-13" representing the financial years between which the CPI inflator is desired.

If both from_fy and to_fy are NULL (the default), from_fy is set to the previous financial year and to_fy to the current financial year, with a warning. Setting only one is an error.
useABSConnection

Should the function connect with ABS.Stat via an SDMX connection? If FALSE (the default), a pre-prepared index table is used. This is much faster and more reliable (in terms of errors), though of course relies on the package maintainer to keep the tables up-to-date.

If the SDMX connection fails, a message is emitted (not a warning) and the function contines as if useABSConnection = FALSE.

The internal data was updated on 2019-11-15 to 2019-Q3.
allow.projection

If set to TRUE the forecast package is used to project forward, if required.
forecast.series

Whether to use the forecast mean, or the upper or lower boundaries of the prediction intervals. A fourth option custom allows manual forecasts to be set.
forecast.level

The prediction interval to be used if forecast.series is upper or lower.
wage.series

If forecast.series = 'custom', how future years should be inflated. The future wage series can be provided in two ways: (1) a single value, to be the assumed rate of wage inflation in years beyond the known series, or (2) a data.table with two variables, fy_year and r. If (2), the variable fy_year must be a vector of all financial years after the last financial year in the (known) wage series and the latest to_fy inclusive. The variable r consists of rates of wage growth assumed in each fy_year.
accelerate.above

An integer setting the threshold for 'acceleration'. When the maximum length of the arguments exceeds this value, calculate each unique value individually then combine. Set to 100,000 as a rule of thumb beyond which calculation speeds benefit dramatically. Can be set to Inf to disable acceleration.

Value

The wage inflation between the two years.

Examples

# Wage inflation
wage_inflator(from_fy = "2013-14", to_fy = "2014-15")
#> [1] 1.022746

# Custom wage inflation
wage_inflator(from_fy = "2016-17",
              to_fy = "2017-18",
              forecast.series = "custom",
              wage.series = 0.05)
#> [1] 1.021378