# \$1 in 1980 is worth \$1.45 in 1986

\$

## Value of \$1 from 1980 to 1986

According to Statistics Canada consumer price index, prices in 1986 are 44.59% higher than average prices since 1980. The Canadian dollar experienced an average inflation rate of 6.34% per year during this period, causing the real value of a dollar to decrease.

In other words, \$1 in 1980 is equivalent in purchasing power to about \$1.45 in 1986, a difference of \$0.45 over 6 years.

The 1980 inflation rate was 11.06%. The inflation rate in 1986 was 4.21%. The 1986 inflation rate is higher compared to the average inflation rate of 2.12% per year between 1986 and 2020.

 Cumulative price change 44.59% Average inflation rate 6.34% Converted amount (\$1 base) \$1.45 Price difference (\$1 base) \$0.45 CPI in 1980 46.200 CPI in 1986 66.800 Inflation in 1980 11.06% Inflation in 1986 4.21%

## Buying power of \$1 in 1980

This chart shows a calculation of buying power equivalence for \$1 in 1980 (price index tracking began in 1914).

For example, if you started with \$1, you would need to end with \$1.45 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$1.45 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 1980 dollars, the chart below shows how \$1 is worth less over 6 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: 1980-1986
Year Dollar Value Inflation Rate
1980 \$1.00 11.06%
1981 \$1.12 12.12%
1982 \$1.23 9.27%
1983 \$1.28 4.59%
1984 \$1.33 3.72%
1985 \$1.39 4.40%
1986 \$1.45 4.21%
1987 \$1.51 4.19%
1988 \$1.56 3.88%
1989 \$1.65 5.26%
1990 \$1.73 4.99%
1991 \$1.79 3.75%
1992 \$1.83 2.17%
1993 \$1.86 1.65%
1994 \$1.87 0.23%
1995 \$1.90 1.74%
1996 \$1.94 2.16%
1997 \$1.96 0.78%
1998 \$1.98 1.00%
1999 \$2.03 2.63%
2000 \$2.09 3.20%
2001 \$2.11 0.72%
2002 \$2.19 3.80%
2003 \$2.23 2.08%
2004 \$2.28 2.13%
2005 \$2.33 2.09%
2006 \$2.37 1.67%
2007 \$2.42 2.38%
2008 \$2.45 1.16%
2009 \$2.48 1.32%
2010 \$2.54 2.35%
2011 \$2.60 2.30%
2012 \$2.62 0.83%
2013 \$2.66 1.24%
2014 \$2.69 1.47%
2015 \$2.74 1.61%
2016 \$2.78 1.50%
2017 \$2.82 1.56%
2018 \$2.83 0.31%
2019 \$2.89 1.99%
2020 \$2.95 2.25%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1980 amounts in 1986 dollars, based on the 44.59% change in prices:

Conversion Table: Value of a dollar in 1986
Initial value Equivalent value
\$1 dollar in 1980 \$1.45 dollars in 1986
\$5 dollars in 1980 \$7.23 dollars in 1986
\$10 dollars in 1980 \$14.46 dollars in 1986
\$50 dollars in 1980 \$72.29 dollars in 1986
\$100 dollars in 1980 \$144.59 dollars in 1986
\$500 dollars in 1980 \$722.94 dollars in 1986
\$1,000 dollars in 1980 \$1,445.89 dollars in 1986
\$5,000 dollars in 1980 \$7,229.44 dollars in 1986
\$10,000 dollars in 1980 \$14,458.87 dollars in 1986
\$50,000 dollars in 1980 \$72,294.37 dollars in 1986
\$100,000 dollars in 1980 \$144,588.74 dollars in 1986
\$500,000 dollars in 1980 \$722,943.72 dollars in 1986
\$1,000,000 dollars in 1980 \$1,445,887.45 dollars in 1986

## How to Calculate Inflation Rate for \$1, 1980 to 1986

Our calculations use the following inflation rate formula to calculate the change in value between 1980 and 1986:

CPI in 1986 CPI in 1980
×
=

Then plug in historical CPI values. The Canadian CPI was 46.2 in the year 1980 and 66.8 in 1986:

66.846.2
×
\$1
=
\$1.45

\$1 in 1980 has the same "purchasing power" or "buying power" as \$1.45 in 1986.

To get the total inflation rate for the 6 years between 1980 and 1986, we use the following formula:

CPI in 1986 - CPI in 1980CPI in 1980
×
100
=
Cumulative inflation rate (6 years)

Plugging in the values to this equation, we get:

66.8 - 46.246.2
×
100
=
45%

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

• Princess Victoria is crowned Princess of Sweden.
• Iranian protesters storm the Russian embassy in Iran.
• Abdou Diouf is elected president of Senegal after being Prime Minister for ten years.
• Cable News Network (CNN) is transmitted for the first time.
• Saddam Hussein, President of Iraq, declares a holy war on Iran.

## 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 1980 → 1986 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 5 Aug. 2020, https://www.officialdata.org/1980-CAD-in-1986?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.