$1 in 2005 → $1.04 in 2007

Canada Inflation Calculator

$

$1 in 2005 → $1.04 in 2007

Canadian Inflation Rate, $1 in 2005 to 2007

According to Statistics Canada consumer price index, prices in 2007 are 4.09% higher than average prices since 2005. The Canadian dollar experienced an average inflation rate of 2.02% per year during this period, meaning the real value of a dollar decreased.

In other words, $1 in 2005 is equivalent in purchasing power to about $1.04 in 2007, a difference of $0.04 over 2 years.

The 2005 inflation rate was 2.09%. The inflation rate in 2007 was 2.38%. The 2007 inflation rate is higher compared to the average inflation rate of 1.53% per year between 2007 and 2020.


Inflation from 2005 to 2007
Cumulative price change 4.09%
Average inflation rate 2.02%
Converted amount ($1 base) $1.04
Price difference ($1 base) $0.04
CPI in 2005 107.600
CPI in 2007 112.000
Inflation in 2005 2.09%
Inflation in 2007 2.38%

CAD Inflation since 1914
Annual Rate, Statistics Canada CPI
Download

Buying power of $1 in 2005

This chart shows a calculation of buying power equivalence for $1 in 2005 (price index tracking began in 1914).

For example, if you started with $1, you would need to end with $1.04 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $1 is equivalent to $1.04 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 2005 dollars, the chart below shows how $1 buys less over the past 2 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
2005 $1.00 2.09%
2006 $1.02 1.67%
2007 $1.04 2.38%
2008 $1.05 1.16%
2009 $1.07 1.32%
2010 $1.09 2.35%
2011 $1.12 2.30%
2012 $1.13 0.83%
2013 $1.14 1.24%
2014 $1.16 1.47%
2015 $1.18 1.61%
2016 $1.19 1.50%
2017 $1.21 1.56%
2018 $1.22 0.31%
2019 $1.24 1.99%
2020 $1.27 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, 2005 to 2007

This inflation calculator uses the following inflation rate formula:

CPI in 2007CPI in 2005
×
2005 CAD value
=
2007 CAD value

Then plug in historical CPI values. The Canadian CPI was 107.6 in the year 2005 and 112 in 2007:

112107.6
×
$1
=
$1.04

$1 in 2005 has the same "purchasing power" or "buying power" as $1.04 in 2007.

To get the total inflation rate for the 2 years between 2005 and 2007, we use the following formula:

CPI in 2007 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (2 years)

Plugging in the values to this equation, we get:

112 - 107.6107.6
×
100
=
4%

News headlines from 2005

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

  • Egyptian President Hosni Mubarak asks Parliament to amend Article 76 and orders constitutional changes in order to allow multi-candidate presidential elections.
  • Syria's 29-year-long military domination of Lebanon ends, after it withdraws the last of its 14,000 troops under international pressure.
  • A coordinated bomb attack hits London's public transport system, during the morning rush hour, killing 52 and injuring a further 700 people.
  • Angela Merkel becomes first female Chancellor of Germany.

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 2005 → 2007 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 20 Jan. 2020, https://www.officialdata.org/2005-CAD-in-2007?amount=1.

Special thanks to QuickChart for providing downloadable chart images.

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


About the author

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.

Email · LinkedIn · Twitter


» Read more about inflation and investment.

Inflation from 2005 to 2007
Cumulative price change 4.09%
Average inflation rate 2.02%
Converted amount ($1 base) $1.04
Price difference ($1 base) $0.04
CPI in 2005 107.600
CPI in 2007 112.000
Inflation in 2005 2.09%
Inflation in 2007 2.38%