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# Canadian inflation rate in 1920: 9.80%

### Inflation in 1920 and Its Effect on Dollar Value

Purchasing power decreased by 9.80% in 1920 compared to 1919. On average, you would have to spend 9.80% more money in 1920 than in 1919 for the same item.

In other words, CA\$1 in 1919 is equivalent in purchasing power to about CA\$1.10 in 1920.

The 1919 inflation rate was 8.51%. The inflation rate in 1920 was 9.80%. The 1920 inflation rate is higher compared to the average inflation rate of 2.53% per year between 1920 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1920 was 11.20. It was 10.20 in the previous year, 1919. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 9.80% Converted amount (CA\$1 base) CA\$1.10 Price difference (CA\$1 base) CA\$0.10 CPI in 1919 10.200 CPI in 1920 11.200 Inflation in 1919 8.51% Inflation in 1920 9.80%

### How to Calculate Inflation Rate for CA\$1, 1919 to 1920

This inflation calculator uses the following inflation rate formula:

CPI in 1920CPI in 1919
×
=

Then plug in historical CPI values. The Canadian CPI was 10.2 in the year 1919 and 11.2 in 1920:

11.210.2
×
CA\$1
=
CA\$1.10

CA\$1 in 1919 has the same "purchasing power" or "buying power" as CA\$1.10 in 1920.

To get the total inflation rate for the 1 years between 1919 and 1920, we use the following formula:

CPI in 1920 - CPI in 1919CPI in 1919
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

11.2 - 10.210.2
×
100
=
10%

Politics and news often influence economic performance. Here's what was happening at the time:

• The German Farmer's Party, which would later develop into National Socialist Party, is formed.
• The Bolshevik party re-establishes the idea of a five-member Politburo at the 8th Congress of the Russian Communist Party, making it the central body of political power in the Soviet Union. Its first members were Vladimir Lenin, Leon Trotsky, Joseph Stalin, Lev Kamenev and Nikolai Krestinsky.
• The Turkish War of Independence begins after Mustafa Kemal Ataturk's lands at Samsun, on the Black Sea.
• The Treaty of Versailles is signed ending World War I and establishing the League of Nations.

### 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 1920 | Canada Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 15 Sep. 2019, https://www.officialdata.org/CAD-inflation-rate-in-1920.