# \$1 in 1920 is worth \$0.64 in 1916

\$

## Value of \$1 from 1920 to 1916

According to Statistics Canada consumer price index, prices in 1916 are 35.71% lower than average prices since 1920. The Canadian dollar experienced an average inflation rate of 11.68% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 1920 is equivalent in purchasing power to about \$0.64 in 1916, a difference of \$-0.36 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 -35.71% Average inflation rate 11.68% Converted amount (\$1 base) \$0.64 Price difference (\$1 base) \$-0.36 CPI in 1920 11.200 CPI in 1916 7.200 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 \$0.64 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.64 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 is worth less over 4 years.

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

Dollar inflation: 1916-1920
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.

This conversion table shows various other 1916 amounts in 1920 dollars, based on the -35.71% change in prices:

Conversion Table: Value of a dollar in 1920
Initial value Equivalent value
\$1 dollar in 1916 \$1.56 dollars in 1920
\$5 dollars in 1916 \$7.78 dollars in 1920
\$10 dollars in 1916 \$15.56 dollars in 1920
\$50 dollars in 1916 \$77.78 dollars in 1920
\$100 dollars in 1916 \$155.56 dollars in 1920
\$500 dollars in 1916 \$777.78 dollars in 1920
\$1,000 dollars in 1916 \$1,555.56 dollars in 1920
\$5,000 dollars in 1916 \$7,777.78 dollars in 1920
\$10,000 dollars in 1916 \$15,555.56 dollars in 1920
\$50,000 dollars in 1916 \$77,777.78 dollars in 1920
\$100,000 dollars in 1916 \$155,555.56 dollars in 1920
\$500,000 dollars in 1916 \$777,777.78 dollars in 1920
\$1,000,000 dollars in 1916 \$1,555,555.56 dollars in 1920

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

Our calculations use the following inflation rate formula to calculate the change in value between 1916 and 1920:

CPI in 1916 CPI in 1920
×
=

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

7.211.2
×
\$1
=
\$0.64

\$1 in 1920 has the same "purchasing power" or "buying power" as \$0.64 in 1916.

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

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

Plugging in the values to this equation, we get:

7.2 - 11.211.2
×
100
=
-36%

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

• The League of Nations' first assembly takes place in Paris.
• The British Parliament passes the Fourth Home Rule Act, dividing Ireland into two parts and leading to a yearlong Anglo-Irish war in the southern counties.
• The Catholic Church canonizes Joan of Arc, formally making her a saint.
• The 19th Amendment to the constitution is ratified, granting U.S. woman suffrage for the first time.

## 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 1920 → 1916 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 23 Sep. 2020, https://www.officialdata.org/1920-CAD-in-1916?amount=1.

Special thanks to QuickChart for their chart image API, which is used for chart downloads.

in2013dollars.com is a reference website maintained by the Official Data Foundation.

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

 Cumulative price change -35.71% Average inflation rate 11.68% Converted amount (\$1 base) \$0.64 Price difference (\$1 base) \$-0.36 CPI in 1920 11.200 CPI in 1916 7.200 Inflation in 1916 14.29% Inflation in 1920 9.80%