Canadian inflation rate in 1985: 4.40%

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Canadian Inflation Rate, 1985-2018 (CA$1)

The consumer price index (CPI) in 1985 was 64.1. Statistics Canada uses this CPI value to track inflation on a monthly basis.

According to Statistics Canada consumer price index, the dollar experienced an average inflation rate of 2.19% per year. Prices in 2018 are 104.2% higher than prices in 1985.

In other words, CA$1 in the year 1985 is equivalent in purchasing power to CA$2.04 in 2018, a difference of CA$1.04 over 33 years.

The current inflation rate in 2018 is 0.38%1. If this number holds, CA$1 today will be equivalent to CA$1.00 next year.

Inflation from 1985 to 2018
Cumulative price change 104.21%
Average inflation rate 2.19%
Price difference (CA$1 base) CA$1.04
CPI in 1985 64.1
CPI in 2018 130.9


CAD inflation chart from 1914 to 2017


How to calculate the inflation rate for CA$1 since 1985

Start with the inflation rate formula:

CPI in 2018 / CPI in 1985 * 1985 CAD value = 2018 CAD value

Then plug in historical CPI values. The Canadian CPI was 64.1 in the year 1985 and 130.9 in 2018:

130.9 / 64.1 * CA$1 = CA$2.04

CA$1 in 1985 has the same "purchasing power" as CA$2.04 in 2018.


News headlines from 1985

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

  • Mikhail Gorbachev replaces Konstantin Chernenko as leader of the Soviet Union.
  • Earthquake with a magnitude of 8.1 rocks Mexico City and kills 10,000 people, leaving over 250,000 homeless.
  • Mikhail Gorbachev (leader of the Soviet Union) and Ronald Reagan (President of the United States) meet for the first time.
  • Ernie Wise makes the first mobile phone call in the UK.

Inflation Data Source

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 1985 | Canada Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 24 Jan. 2018, http://www.in2013dollars.com/CAD-inflation-rate-in-1985.


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