# Canadian inflation rate in 1918: 13.25%

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## Inflation in 1918 and its effect on dollar value

Purchasing power decreased by 13.25% in 1918 compared to 1917. On average, you would have to spend 13.25% more money in 1918 than in 1917 for the same item.

In other words, \$1 in 1917 is equivalent in purchasing power to about \$1.13 in 1918.

The 1917 inflation rate was 15.28%. The inflation rate in 1918 was 13.25%. The 1918 inflation rate is higher compared to the average inflation rate of 2.66% per year between 1918 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1918 was 9.40. It was 8.30 in the previous year, 1917. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 13.25% Converted amount (\$1 base) \$1.13 Price difference (\$1 base) \$0.13 CPI in 1917 8.300 CPI in 1918 9.400 Inflation in 1917 15.28% Inflation in 1918 13.25%

## How to Calculate Inflation Rate for \$1, 1917 to 1918

Our calculations use the following inflation rate formula to calculate the change in value between 1917 and 1918:

CPI in 1918 CPI in 1917
×
=

Then plug in historical CPI values. The Canadian CPI was 8.3 in the year 1917 and 9.4 in 1918:

9.48.3
×
\$1
=
\$1.13

\$1 in 1917 has the same "purchasing power" or "buying power" as \$1.13 in 1918.

To get the total inflation rate for the 1 years between 1917 and 1918, we use the following formula:

CPI in 1918 - CPI in 1917CPI in 1917
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

9.4 - 8.38.3
×
100
=
13%

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

• The Russian "February Revolution" begins alongside protests celebrating Women's Day and St Petersburg riots.
• Tsar Nicholas II abdicates, nominating his brother, Grand Duke Michael, to succeed him.
• President Wilson asks US Congress to declare war against Germany.
• Vladimir Lenin issues the "April Theses" appealing for Soviets to take power during Russian Revolution.
• Leon Trotsky becomes chairman of the Petrograd Soviet after the Bolsheviks gain control.

## 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 1918 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 May. 2020, https://www.officialdata.org/CAD-inflation-rate-in-1918.