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# Canadian inflation rate in 1926: -1.08%

### Inflation in 1926 and Its Effect on Dollar Value

Purchasing power increased by 1.08% in 1926 compared to 1925. On average, you would have to spend 1.08% less money in 1926 than in 1925 for the same item. This is an example of deflation.

In other words, CA\$1 in 1925 is equivalent in purchasing power to about CA\$0.99 in 1926.

The 1925 inflation rate was 2.20%. The inflation rate in 1926 was -1.08%. The 1926 inflation rate is lower compared to the average inflation rate of 2.92% per year between 1926 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1926 was 9.20. It was 9.30 in the previous year, 1925. The difference in CPI between the years is used by Statistics Canada to officially determine inflation. Because the 1926 CPI is less than 1925 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -1.08% Converted amount (CA\$1 base) CA\$0.99 Price difference (CA\$1 base) CA\$-0.01 CPI in 1925 9.300 CPI in 1926 9.200 Inflation in 1925 2.20% Inflation in 1926 -1.08%

### How to Calculate Inflation Rate for CA\$1, 1925 to 1926

This inflation calculator uses the following inflation rate formula:

CPI in 1926CPI in 1925
×
=

Then plug in historical CPI values. The Canadian CPI was 9.3 in the year 1925 and 9.2 in 1926:

9.29.3
×
CA\$1
=
CA\$0.99

CA\$1 in 1925 has the same "purchasing power" or "buying power" as CA\$0.99 in 1926.

To get the total inflation rate for the 1 years between 1925 and 1926, we use the following formula:

CPI in 1926 - CPI in 1925CPI in 1925
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

9.2 - 9.39.3
×
100
=
-1%

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

• The Ku Klux Klan's first national march takes place in Washington.
• The last Qajar Shah of Iran is deposed with Reza Shah Pahlavi taking over.
• Scopes monkey trial ends in Dayton, Tennessee, finding John T. Scopes guilty of teaching evolution.

### 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 1926 | Canada Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 14 Oct. 2019, https://www.officialdata.org/CAD-inflation-rate-in-1926.