Calculate annual inflation adjusted costs

Up to a present time inflated upwards.

inflation_adjust_cost(from_year, to_year, from_cost,
  inflation_data = 0.035)

Arguments

from_year	Date of cost to convert from
to_year	Date to convert cost to
from_cost	Cost at from_year

Value

Inflated (to) cost (scalar), with attributes used to generate the return value:

• from_year

• to_year

• from_cost

• reference Which inflation adjustment dataset used.

Details

Option to use the following datasets:

• ONS GDP_Deflators_Qtrly_National_Accounts (This document contains the latest gross domestic product (GDP) deflators. The GDP deflator can be viewed as a measure of general inflation in the domestic economy)

• PSSRU annual inflation hospital and community health services (HCHS)

• Consumer Price Inflation (CPI)

• Fixed 3.5%.

$$(1 + i_{1})(1 + i_{2}) \cdots (1 + i_{n}) \times C$$

Clearly, for the same i each year this is simply $$C(1 + i)^n$$

Examples

from_year <- 2012
to_year <- 2015
from_cost <- 96.140

#100

inflation_adjust_cost(from_year = 2010,
                      to_year = 2016,
                      from_cost = 1)
#> [1] 1.229255
#> attr(,"from_year")
#> [1] 2010
#> attr(,"to_year")
#> [1] 2016
#> attr(,"from_cost")
#> [1] 1
#> attr(,"reference")
#> [1] 0.035
#1.229255
1*(1+0.035)^6
#> [1] 1.229255

inflation_adjust_cost(from_year = 2014,
                      to_year = 2016,
                      from_cost = 1,
                      inflation_data = "CPI")
#> Reading file C:\Users\ngreen1\AppData\Local\Temp\RtmpG0V8wd\temp_libpath3b94421e3623\QALY\extdata\CPI\data\CPIH_2007-2018.csv
#> [1] 1.01404
#> attr(,"from_year")
#> [1] 2014
#> attr(,"to_year")
#> [1] 2016
#> attr(,"from_cost")
#> [1] 1
#> attr(,"reference")
#> [1] "CPI"
1*1.004*1.01
#> [1] 1.01404