Inflation in 2023 and its effect on dollar value
$1 in 2022 is equivalent in purchasing power to about $1.00 today. The dollar had an average deflation rate of -0.30% in the last 12 months. As a result, the real value of a dollar has been increasing recently. Purchasing power increased by 0.30% in 2023 compared to 2022. On average, you would have to spend 0.30% less money in 2023 than in 2022 for the same item. This is an example of deflation.
This means that today's prices are 0.3% lower than average prices since 2022, according to Statistics Canada consumer price index. A dollar today buys 100.000% of what it could buy back then.
The inflation rate in 2022 was 7.20%. The current inflation rate compared to last year is now -0.30%. If this number holds, the rate of inflation is so negligible that $1 today will roughly maintain its value.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2023 is 151.35. It was 151.80 in the previous year, 2022. The difference in CPI between the years is used by Statistics Canada to officially determine inflation. Because the 2023 CPI is less than 2022 CPI, negative inflation (also known as deflation) has occurred.
⌃
| Average inflation rate | -0.30% |
| Converted amount $1 base | $1.00 |
| Price difference $1 base | $0.00 |
| CPI in 2022 | 151.804 |
| CPI in 2023 | 151.351 |
| Inflation in 2022 | 7.20% |
| Inflation in 2023 | -0.30% |
| $1 in 2022 | $1.00 in 2023 |
How to calculate inflation rate for $1 since 2022
Our calculations use the following inflation rate formula to calculate the change in value between 2022 and today:
CPI today CPI in 2022
×
2022 CAD value
=
Today's value
Then plug in historical CPI values. The Canadian CPI was 151.8041332976 in the year 2022 and 151.35098631039997 in 2023:
151.35098631039997151.8041332976
×
$1
=
$1.00
$1 in 2022 has the same "purchasing power" or "buying power" as $1.00 in 2023.
To get the total inflation rate for the 1 years between 2022 and 2023, we use the following formula:
CPI in 2023 - CPI in 2022CPI in 2022
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
151.35098631039997 - 151.8041332976151.8041332976
×
100
=
0%
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 2023 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 1 Jun. 2023, https://www.officialdata.org/CAD-inflation-rate-in-2023.
Special thanks to QuickChart for their chart image API, which is used for chart downloads.
| Average inflation rate | -0.30% |
| Converted amount $1 base | $1.00 |
| Price difference $1 base | $0.00 |
| CPI in 2022 | 151.804 |
| CPI in 2023 | 151.351 |
| Inflation in 2022 | 7.20% |
| Inflation in 2023 | -0.30% |
| $1 in 2022 | $1.00 in 2023 |