Canadian inflation rate in 2023: 4.00%

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Inflation in 2023 and its effect on dollar value

$1 in 2022 is equivalent in purchasing power to about $1.04 today. The dollar had an average inflation rate of 4.00% in the last 12 months. As a result, the real value of a dollar has been decreasing recently. Purchasing power decreased by 4.00% in 2023 compared to 2022. On average, you would have to spend 4.00% more money in 2023 than in 2022 for the same item.

This means that today's prices are 1.04 times as high as average prices since 2022, according to Statistics Canada consumer price index. A dollar today only buys 96.154% 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 4.00%. If this number holds, $1 today will be equivalent in buying power to $1.04 next year.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2023 is 157.88. 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.

⌃
Inflation from 2022 to 2023
Average inflation rate4.00%
Converted amount
$1 base		$1.04
Price difference
$1 base		$0.04
CPI in 2022151.804
CPI in 2023157.876
Inflation in 20227.20%
Inflation in 20234.00%
$1 in 2022$1.04 in 2023
Recent CAD inflation
Annual Rate, Statistics Canada CPI
Download

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 157.87629829504002 in 2023:

157.87629829504002151.8041332976
×
$1
=
$1.04

$1 in 2022 has the same "purchasing power" or "buying power" as $1.04 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:

157.87629829504002 - 151.8041332976151.8041332976
×
100
=
4%

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, 2 Dec. 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.

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 2022 to 2023
Average inflation rate4.00%
Converted amount
$1 base		$1.04
Price difference
$1 base		$0.04
CPI in 2022151.804
CPI in 2023157.876
Inflation in 20227.20%
Inflation in 20234.00%
$1 in 2022$1.04 in 2023