Inflation adjust dollar values using annual PCE Index — inflation

The Personal Consumption Expenditures Price Index (PCE Index) is from the Federal Reserve Bank of St. Louis's FRED tool.

Usage

inflation_adjust(
  df,
  year_variable,
  dollar_variables,
  names_suffix = NULL,
  base_year = 2024
)

Arguments

df: The dataframe with values to inflation-adjust
year_variable: The name of the column denoting the year that existing dollar-denominated figures are based in.
dollar_variables: The variables to inflation-adjust.
names_suffix: A suffix to add to the names of the inflation-adjusted variables. If NULL, defaults to "_<base_year>". If "", columns are renamed in place.
base_year: The year to use as the base for inflation adjustment. If NULL, defaults to the most recent year in the PCE index data.

Value

A tibble identical to the input df with additional inflation-adjusted columns. For each column specified in dollar_variables, a new column is created with the same name plus names_suffix (default: "_base_year"). The adjusted values are calculated by multiplying original values by an inflation factor derived from the PCE Price Index ratio between the base year and each observation's year. Original columns are preserved unchanged.

Examples

if (FALSE) { # \dontrun{
df = tibble::tribble(
  ~ year, ~ amount,
  1990, 1,
  1991, 1,
  1992, 1)

df |>
  inflation_adjust(
    year_variable = year,
    dollar_variables = amount,
    names_suffix = "inflation_adjusted")
} # }