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# \$1 in 1975 → \$1.38 in 1979

### Canadian Inflation Rate, \$1 in 1975 to 1979

According to Statistics Canada consumer price index, prices in 1979 are 37.75% higher than average prices since 1975. The Canadian dollar experienced an average inflation rate of 8.34% per year during this period, meaning the real value of a dollar decreased.

In other words, \$1 in 1975 is equivalent in purchasing power to about \$1.38 in 1979, a difference of \$0.38 over 4 years.

The 1975 inflation rate was 9.42%. The inflation rate in 1979 was 9.76%. The 1979 inflation rate is higher compared to the average inflation rate of 2.94% per year between 1979 and 2020.

 Cumulative price change 37.75% Average inflation rate 8.34% Converted amount (\$1 base) \$1.38 Price difference (\$1 base) \$0.38 CPI in 1975 30.200 CPI in 1979 41.600 Inflation in 1975 9.42% Inflation in 1979 9.76%

### Buying power of \$1 in 1975

This chart shows a calculation of buying power equivalence for \$1 in 1975 (price index tracking began in 1914).

For example, if you started with \$1, you would need to end with \$1.38 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$1.38 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 1975 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
1975 \$1.00 9.42%
1976 \$1.06 5.63%
1977 \$1.16 9.40%
1978 \$1.25 8.60%
1979 \$1.38 9.76%
1980 \$1.53 11.06%
1981 \$1.72 12.12%
1982 \$1.87 9.27%
1983 \$1.96 4.59%
1984 \$2.03 3.72%
1985 \$2.12 4.40%
1986 \$2.21 4.21%
1987 \$2.30 4.19%
1988 \$2.39 3.88%
1989 \$2.52 5.26%
1990 \$2.65 4.99%
1991 \$2.75 3.75%
1992 \$2.80 2.17%
1993 \$2.85 1.65%
1994 \$2.86 0.23%
1995 \$2.91 1.74%
1996 \$2.97 2.16%
1997 \$2.99 0.78%
1998 \$3.02 1.00%
1999 \$3.10 2.63%
2000 \$3.20 3.20%
2001 \$3.23 0.72%
2002 \$3.35 3.80%
2003 \$3.42 2.08%
2004 \$3.49 2.13%
2005 \$3.56 2.09%
2006 \$3.62 1.67%
2007 \$3.71 2.38%
2008 \$3.75 1.16%
2009 \$3.80 1.32%
2010 \$3.89 2.35%
2011 \$3.98 2.30%
2012 \$4.01 0.83%
2013 \$4.06 1.24%
2014 \$4.12 1.47%
2015 \$4.19 1.61%
2016 \$4.25 1.50%
2017 \$4.32 1.56%
2018 \$4.33 0.31%
2019 \$4.42 1.99%
2020 \$4.52 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, 1975 to 1979

This inflation calculator uses the following inflation rate formula:

CPI in 1979CPI in 1975
×
=

Then plug in historical CPI values. The Canadian CPI was 30.2 in the year 1975 and 41.6 in 1979:

41.630.2
×
\$1
=
\$1.38

\$1 in 1975 has the same "purchasing power" or "buying power" as \$1.38 in 1979.

To get the total inflation rate for the 4 years between 1975 and 1979, we use the following formula:

CPI in 1979 - CPI in 1975CPI in 1975
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

41.6 - 30.230.2
×
100
=
38%

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

• Margaret Thatcher becomes leader of the British Conservative Party, after defeating Edward Heath.
• Ethiopia abrogates its 3,000-year-old monarchy.
• Bill Gates and Paul Allen found Microsoft.
• The US signals the beginning of the end of its involvement Vietnam, after it begins to evacuate its citizens from Saigon.
• Gough Whitlam is removed by Governor General Sir John Kerr: the first time an elected Prime Minister had been deposed in 200 years (Australia).

### 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 1975 → 1979 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 20 Jan. 2020, https://www.officialdata.org/1975-CAD-in-1979?amount=1.