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# Canadian inflation rate in 1986: 4.21%

### Inflation in 1986 and Its Effect on Dollar Value

Purchasing power decreased by 4.21% in 1986 compared to 1985. On average, you would have to spend 4.21% more money in 1986 than in 1985 for the same item.

In other words, CA\$1 in 1985 is equivalent in purchasing power to about CA\$1.04 in 1986.

The 1985 inflation rate was 4.40%. The inflation rate in 1986 was 4.21%. The 1986 inflation rate is higher compared to the average inflation rate of 2.12% per year between 1986 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1986 was 66.80. It was 64.10 in the previous year, 1985. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 4.21% Converted amount (CA\$1 base) CA\$1.04 Price difference (CA\$1 base) CA\$0.04 CPI in 1985 64.100 CPI in 1986 66.800 Inflation in 1985 4.40% Inflation in 1986 4.21%

### How to Calculate Inflation Rate for CA\$1, 1985 to 1986

This inflation calculator uses the following inflation rate formula:

CPI in 1986CPI in 1985
×
=

Then plug in historical CPI values. The Canadian CPI was 64.1 in the year 1985 and 66.8 in 1986:

66.864.1
×
CA\$1
=
CA\$1.04

CA\$1 in 1985 has the same "purchasing power" or "buying power" as CA\$1.04 in 1986.

To get the total inflation rate for the 1 years between 1985 and 1986, we use the following formula:

CPI in 1986 - CPI in 1985CPI in 1985
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

66.8 - 64.164.1
×
100
=
4%

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.

### 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 1986 | Canada Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 23 Sep. 2019, https://www.officialdata.org/CAD-inflation-rate-in-1986.