# Canadian inflation rate in 1917: 15.28%

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## Inflation in 1917 and its effect on dollar value

Purchasing power decreased by 15.28% in 1917 compared to 1916. On average, you would have to spend 15.28% more money in 1917 than in 1916 for the same item.

In other words, \$1 in 1916 is equivalent in purchasing power to about \$1.15 in 1917.

The 1916 inflation rate was 14.29%. The inflation rate in 1917 was 15.28%. The 1917 inflation rate is higher compared to the average inflation rate of 2.76% per year between 1917 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1917 was 8.30. It was 7.20 in the previous year, 1916. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 15.28% Converted amount (\$1 base) \$1.15 Price difference (\$1 base) \$0.15 CPI in 1916 7.200 CPI in 1917 8.300 Inflation in 1916 14.29% Inflation in 1917 15.28%

## How to Calculate Inflation Rate for \$1, 1916 to 1917

Our calculations use the following inflation rate formula to calculate the change in value between 1916 and 1917:

CPI in 1917 CPI in 1916
×
=

Then plug in historical CPI values. The Canadian CPI was 7.2 in the year 1916 and 8.3 in 1917:

8.37.2
×
\$1
=
\$1.15

\$1 in 1916 has the same "purchasing power" or "buying power" as \$1.15 in 1917.

To get the total inflation rate for the 1 years between 1916 and 1917, we use the following formula:

CPI in 1917 - CPI in 1916CPI in 1916
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

8.3 - 7.27.2
×
100
=
15%

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

• Ottoman forces successfully defend access to Constantinople, leading to ANZAC forces withdrawal from the Gallipoli Peninsula.
• An estimated 1 million men are killed during the Battle of Verdun.
• The Easter Rising ends after Irish republicans abandon the post office in Dublin and surrenders.
• Tanks known as 'Little Willies' are used for the first time at the Battle of the Somme.
• The first aerial combat in France is won by Manfred von Richthofen, known as The Red Baron, German Luftstreitkrafte flying ace.

## 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: “Inflation Rate in 1917 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 25 May. 2020, https://www.officialdata.org/CAD-inflation-rate-in-1917.