Canadian inflation rate in 2021: 0.73%

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Inflation in 2021 and its effect on dollar value

$1 in 2020 is equivalent in purchasing power to about $1.01 today. The dollar had an average inflation rate of 0.73% in the last 12 months. As a result, the real value of a dollar has been decreasing recently. Purchasing power decreased by 0.73% in 2021 compared to 2020. On average, you would have to spend 0.73% more money in 2021 than in 2020 for the same item.

This means that today's prices are 1.01 times higher than average prices since 2020, according to Statistics Canada consumer price index. A dollar today only buys 99.01% of what it could buy back then.

The 2020 inflation rate was 2.25%. The current year-over-year inflation rate (2020 to 2021) is now 0.73%1. If this number holds, $1 today will be equivalent in buying power to $1.01 next year.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2021 is 137.40. It was 136.40 in the previous year, 2020. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.


Inflation from 2020 to 2021
Average inflation rate 0.73%
Converted amount ($1 base) $1.01
Price difference ($1 base) $0.01
CPI in 2020 136.400
CPI in 2021 137.400
Inflation in 2020 2.25%
Inflation in 2021 0.73%
$1 in 2020 $1.01 in 2021

CAD Inflation since 1914
Annual Rate, Statistics Canada CPI
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How to Calculate Inflation Rate for $1 since 2020

Our calculations use the following inflation rate formula to calculate the change in value between 2020 and today:

CPI today CPI in 2020
×
2020 CAD value
=
Today's value

Then plug in historical CPI values. The Canadian CPI was 136.4 in the year 2020 and 137.4 in 2021:

137.4136.4
×
$1
=
$1.01

$1 in 2020 has the same "purchasing power" or "buying power" as $1.01 in 2021.

To get the total inflation rate for the 1 years between 2020 and 2021, we use the following formula:

CPI in 2021 - CPI in 2020CPI in 2020
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

137.4 - 136.4136.4
×
100
=
1%

Data Source & Citation

Raw data for these calculations comes from the government of Canada's annual Consumer Price Index (CPI), established in 1914 and computed by Statistics Canada (StatCan).

You may use the following MLA citation for this page: “Inflation Rate in 2021 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 18 May. 2021, https://www.officialdata.org/CAD-inflation-rate-in-2021.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.


Ian Webster

About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

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Inflation from 2020 to 2021
Average inflation rate 0.73%
Converted amount ($1 base) $1.01
Price difference ($1 base) $0.01
CPI in 2020 136.400
CPI in 2021 137.400
Inflation in 2020 2.25%
Inflation in 2021 0.73%
$1 in 2020 $1.01 in 2021