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# Canadian inflation rate in 1990: 4.99%

### Inflation in 1990 and Its Effect on Dollar Value

Purchasing power decreased by 4.99% in 1990 compared to 1989. On average, you would have to spend 4.99% more money in 1990 than in 1989 for the same item.

In other words, CA\$1 in 1989 is equivalent in purchasing power to about CA\$1.05 in 1990.

The 1989 inflation rate was 5.26%. The inflation rate in 1990 was 4.99%. The 1990 inflation rate is higher compared to the average inflation rate of 1.78% per year between 1990 and 2019.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1990 was 79.90. It was 76.10 in the previous year, 1989. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 4.99% Converted amount (CA\$1 base) CA\$1.05 Price difference (CA\$1 base) CA\$0.05 CPI in 1989 76.100 CPI in 1990 79.900 Inflation in 1989 5.26% Inflation in 1990 4.99%

### How to Calculate Inflation Rate for CA\$1, 1989 to 1990

This inflation calculator uses the following inflation rate formula:

CPI in 1990CPI in 1989
×
=

Then plug in historical CPI values. The Canadian CPI was 76.1 in the year 1989 and 79.9 in 1990:

79.976.1
×
CA\$1
=
CA\$1.05

CA\$1 in 1989 has the same "purchasing power" or "buying power" as CA\$1.05 in 1990.

To get the total inflation rate for the 1 years between 1989 and 1990, we use the following formula:

CPI in 1990 - CPI in 1989CPI in 1989
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

79.9 - 76.176.1
×
100
=
5%

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

• Chinese troops kill an estimated 1,000 students protesting at Tiananmen Square.
• The first (partially) free elections take place in Poland, bringing democracy to Eastern Europe for the first time in 40 years. (Won by the Solidarity Party)
• The demolition of the Berlin Wall begins.
• Presidents George H. W. Bush and Mikhail Gorbachev, declare that the Cold War has ended.

### 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 1990 | Canada Inflation Calculator.” U.S. Official Inflation Data, Alioth Finance, 25 Jun. 2019, https://www.officialdata.org/CAD-inflation-rate-in-1990.