# \$1 in 1940 is worth \$0.93 in 1938

\$

## Value of \$1 from 1940 to 1938

According to Statistics Canada consumer price index, prices in 1938 are 7.32% lower than average prices since 1940. The Canadian dollar experienced an average inflation rate of 3.87% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 1940 is equivalent in purchasing power to about \$0.93 in 1938, a difference of \$-0.07 over 2 years.

The 1938 inflation rate was -2.56%. The inflation rate in 1940 was 5.13%. The 1940 inflation rate is higher compared to the average inflation rate of 3.58% per year between 1940 and 2020.

 Cumulative price change -7.32% Average inflation rate 3.87% Converted amount (\$1 base) \$0.93 Price difference (\$1 base) \$-0.07 CPI in 1940 8.200 CPI in 1938 7.600 Inflation in 1938 -2.56% Inflation in 1940 5.13%

## Buying power of \$1 in 1938

This chart shows a calculation of buying power equivalence for \$1 in 1938 (price index tracking began in 1914).

For example, if you started with \$1, you would need to end with \$0.93 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.93 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 1938 dollars, the chart below shows how \$1 is worth less over 2 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: 1938-1940
Year Dollar Value Inflation Rate
1938 \$1.00 -2.56%
1939 \$1.03 2.63%
1940 \$1.08 5.13%
1941 \$1.14 6.10%
1942 \$1.18 3.45%
1943 \$1.21 2.22%
1944 \$1.18 -2.17%
1945 \$1.21 2.22%
1946 \$1.28 5.43%
1947 \$1.46 14.43%
1948 \$1.59 9.01%
1949 \$1.61 0.83%
1950 \$1.70 5.74%
1951 \$1.88 10.85%
1952 \$1.86 -1.40%
1953 \$1.86 0.00%
1954 \$1.86 0.00%
1955 \$1.87 0.71%
1956 \$1.92 2.82%
1957 \$1.96 2.05%
1958 \$2.01 2.68%
1959 \$2.04 1.31%
1960 \$2.07 1.29%
1961 \$2.07 0.00%
1962 \$2.11 1.91%
1963 \$2.14 1.88%
1964 \$2.18 1.84%
1965 \$2.25 3.01%
1966 \$2.33 3.51%
1967 \$2.42 3.95%
1968 \$2.53 4.35%
1969 \$2.64 4.69%
1970 \$2.67 1.00%
1971 \$2.80 4.93%
1972 \$2.95 5.16%
1973 \$3.22 9.38%
1974 \$3.63 12.65%
1975 \$3.97 9.42%
1976 \$4.20 5.63%
1977 \$4.59 9.40%
1978 \$4.99 8.60%
1979 \$5.47 9.76%
1980 \$6.08 11.06%
1981 \$6.82 12.12%
1982 \$7.45 9.27%
1983 \$7.79 4.59%
1984 \$8.08 3.72%
1985 \$8.43 4.40%
1986 \$8.79 4.21%
1987 \$9.16 4.19%
1988 \$9.51 3.88%
1989 \$10.01 5.26%
1990 \$10.51 4.99%
1991 \$10.91 3.75%
1992 \$11.14 2.17%
1993 \$11.33 1.65%
1994 \$11.36 0.23%
1995 \$11.55 1.74%
1996 \$11.80 2.16%
1997 \$11.89 0.78%
1998 \$12.01 1.00%
1999 \$12.33 2.63%
2000 \$12.72 3.20%
2001 \$12.82 0.72%
2002 \$13.30 3.80%
2003 \$13.58 2.08%
2004 \$13.87 2.13%
2005 \$14.16 2.09%
2006 \$14.39 1.67%
2007 \$14.74 2.38%
2008 \$14.91 1.16%
2009 \$15.11 1.32%
2010 \$15.46 2.35%
2011 \$15.82 2.30%
2012 \$15.95 0.83%
2013 \$16.14 1.24%
2014 \$16.38 1.47%
2015 \$16.64 1.61%
2016 \$16.89 1.50%
2017 \$17.16 1.56%
2018 \$17.21 0.31%
2019 \$17.55 1.99%
2020 \$17.95 2.25%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1938 amounts in 1940 dollars, based on the -7.32% change in prices:

Conversion Table: Value of a dollar in 1940
Initial value Equivalent value
\$1 dollar in 1938 \$1.08 dollars in 1940
\$5 dollars in 1938 \$5.39 dollars in 1940
\$10 dollars in 1938 \$10.79 dollars in 1940
\$50 dollars in 1938 \$53.95 dollars in 1940
\$100 dollars in 1938 \$107.89 dollars in 1940
\$500 dollars in 1938 \$539.47 dollars in 1940
\$1,000 dollars in 1938 \$1,078.95 dollars in 1940
\$5,000 dollars in 1938 \$5,394.74 dollars in 1940
\$10,000 dollars in 1938 \$10,789.47 dollars in 1940
\$50,000 dollars in 1938 \$53,947.37 dollars in 1940
\$100,000 dollars in 1938 \$107,894.74 dollars in 1940
\$500,000 dollars in 1938 \$539,473.68 dollars in 1940
\$1,000,000 dollars in 1938 \$1,078,947.37 dollars in 1940

## How to Calculate Inflation Rate for \$1, 1938 to 1940

Our calculations use the following inflation rate formula to calculate the change in value between 1938 and 1940:

CPI in 1938 CPI in 1940
×
=

Then plug in historical CPI values. The Canadian CPI was 8.2 in the year 1940 and 7.6 in 1938:

7.68.2
×
\$1
=
\$0.93

\$1 in 1940 has the same "purchasing power" or "buying power" as \$0.93 in 1938.

To get the total inflation rate for the 2 years between 1938 and 1940, we use the following formula:

CPI in 1938 - CPI in 1940CPI in 1940
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

7.6 - 8.28.2
×
100
=
-7%

## 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 1940 → 1938 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 24 Sep. 2020, https://www.officialdata.org/1940-CAD-in-1938?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.