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# \$1 in 1916 → \$1.56 in 1920

### Canadian Inflation Rate, \$1 in 1916 to 1920

According to Statistics Canada consumer price index, prices in 1920 are 55.56% higher than average prices since 1916. The Canadian dollar experienced an average inflation rate of 11.68% per year during this period, meaning the real value of a dollar decreased.

In other words, \$1 in 1916 is equivalent in purchasing power to about \$1.56 in 1920, a difference of \$0.56 over 4 years.

The 1916 inflation rate was 14.29%. 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 2020.

 Cumulative price change 55.56% Average inflation rate 11.68% Converted amount (\$1 base) \$1.56 Price difference (\$1 base) \$0.56 CPI in 1916 7.200 CPI in 1920 11.200 Inflation in 1916 14.29% Inflation in 1920 9.80%

### Buying power of \$1 in 1916

This chart shows a calculation of buying power equivalence for \$1 in 1916 (price index tracking began in 1914).

For example, if you started with \$1, you would need to end with \$1.56 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$1.56 over time, that means that the "real value" of a single Canadian dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1916 dollars, the chart below shows how \$1 buys less over the past 4 years.

According to Statistics Canada, each of these CAD amounts below is equal in terms of what it could buy at the time:

Year Dollar Value Inflation Rate
1916 \$1.00 14.29%
1917 \$1.15 15.28%
1918 \$1.31 13.25%
1919 \$1.42 8.51%
1920 \$1.56 9.80%
1921 \$1.31 -16.07%
1922 \$1.28 -2.13%
1923 \$1.28 0.00%
1924 \$1.26 -1.09%
1925 \$1.29 2.20%
1926 \$1.28 -1.08%
1927 \$1.26 -1.09%
1928 \$1.28 1.10%
1929 \$1.31 2.17%
1930 \$1.22 -6.38%
1931 \$1.10 -10.23%
1932 \$1.01 -7.59%
1933 \$0.99 -2.74%
1934 \$1.00 1.41%
1935 \$1.03 2.78%
1936 \$1.04 1.35%
1937 \$1.08 4.00%
1938 \$1.06 -2.56%
1939 \$1.08 2.63%
1940 \$1.14 5.13%
1941 \$1.21 6.10%
1942 \$1.25 3.45%
1943 \$1.28 2.22%
1944 \$1.25 -2.17%
1945 \$1.28 2.22%
1946 \$1.35 5.43%
1947 \$1.54 14.43%
1948 \$1.68 9.01%
1949 \$1.69 0.83%
1950 \$1.79 5.74%
1951 \$1.99 10.85%
1952 \$1.96 -1.40%
1953 \$1.96 0.00%
1954 \$1.96 0.00%
1955 \$1.97 0.71%
1956 \$2.03 2.82%
1957 \$2.07 2.05%
1958 \$2.13 2.68%
1959 \$2.15 1.31%
1960 \$2.18 1.29%
1961 \$2.18 0.00%
1962 \$2.22 1.91%
1963 \$2.26 1.88%
1964 \$2.31 1.84%
1965 \$2.38 3.01%
1966 \$2.46 3.51%
1967 \$2.56 3.95%
1968 \$2.67 4.35%
1969 \$2.79 4.69%
1970 \$2.82 1.00%
1971 \$2.96 4.93%
1972 \$3.11 5.16%
1973 \$3.40 9.38%
1974 \$3.83 12.65%
1975 \$4.19 9.42%
1976 \$4.43 5.63%
1977 \$4.85 9.40%
1978 \$5.26 8.60%
1979 \$5.78 9.76%
1980 \$6.42 11.06%
1981 \$7.19 12.12%
1982 \$7.86 9.27%
1983 \$8.22 4.59%
1984 \$8.53 3.72%
1985 \$8.90 4.40%
1986 \$9.28 4.21%
1987 \$9.67 4.19%
1988 \$10.04 3.88%
1989 \$10.57 5.26%
1990 \$11.10 4.99%
1991 \$11.51 3.75%
1992 \$11.76 2.17%
1993 \$11.96 1.65%
1994 \$11.99 0.23%
1995 \$12.19 1.74%
1996 \$12.46 2.16%
1997 \$12.56 0.78%
1998 \$12.68 1.00%
1999 \$13.01 2.63%
2000 \$13.43 3.20%
2001 \$13.53 0.72%
2002 \$14.04 3.80%
2003 \$14.33 2.08%
2004 \$14.64 2.13%
2005 \$14.94 2.09%
2006 \$15.19 1.67%
2007 \$15.56 2.38%
2008 \$15.74 1.16%
2009 \$15.94 1.32%
2010 \$16.32 2.35%
2011 \$16.69 2.30%
2012 \$16.83 0.83%
2013 \$17.04 1.24%
2014 \$17.29 1.47%
2015 \$17.57 1.61%
2016 \$17.83 1.50%
2017 \$18.11 1.56%
2018 \$18.17 0.31%
2019 \$18.53 1.99%
2020 \$18.94 2.25%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

### How to Calculate Inflation Rate for \$1, 1916 to 1920

This inflation calculator uses the following inflation rate formula:

CPI in 1920CPI in 1916
×
=

Then plug in historical CPI values. The Canadian CPI was 7.2 in the year 1916 and 11.2 in 1920:

11.27.2
×
\$1
=
\$1.56

\$1 in 1916 has the same "purchasing power" or "buying power" as \$1.56 in 1920.

To get the total inflation rate for the 4 years between 1916 and 1920, we use the following formula:

CPI in 1920 - CPI in 1916CPI in 1916
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

11.2 - 7.27.2
×
100
=
56%

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

• Ottoman forces successfully defend access to Constantinople, leading to ANZAC forces withdrawal from the Gallipoli Peninsula.
• An estimated 1 million men are killed during the Battle of Verdun.
• The Easter Rising ends after Irish republicans abandon the post office in Dublin and surrenders.
• Tanks known as 'Little Willies' are used for the first time at the Battle of the Somme.
• The first aerial combat in France is won by Manfred von Richthofen, known as The Red Baron, German Luftstreitkrafte flying ace.

### 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: “\$1 in 1916 → 1920 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Jan. 2020, https://www.officialdata.org/1916-CAD-in-1920?amount=1.