# Canadian inflation rate in 1925: 2.20%

\$

## Inflation in 1925 and its effect on dollar value

\$1 in 1924 is equivalent in purchasing power to about \$1.02 in 1925. The dollar had an average inflation rate of 2.20% per year between 1924 and 1925, producing a cumulative price increase of 2.20%. Purchasing power decreased by 2.20% in 1925 compared to 1924. On average, you would have to spend 2.20% more money in 1925 than in 1924 for the same item.

This means that prices in 1925 are 1.02 times higher than average prices since 1924, according to Statistics Canada consumer price index.

The 1924 inflation rate was -1.09%. The inflation rate in 1925 was 2.20%. The 1925 inflation rate is lower compared to the average inflation rate of 2.84% per year between 1925 and 2021.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1925 was 9.30. It was 9.10 in the previous year, 1924. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 2.20% Converted amount (\$1 base) \$1.02 Price difference (\$1 base) \$0.02 CPI in 1924 9.100 CPI in 1925 9.300 Inflation in 1924 -1.09% Inflation in 1925 2.20% \$1 in 1924 \$1.02 in 1925

## How to Calculate Inflation Rate for \$1, 1924 to 1925

Our calculations use the following inflation rate formula to calculate the change in value between 1924 and 1925:

CPI in 1925 CPI in 1924
×
=

Then plug in historical CPI values. The Canadian CPI was 9.1 in the year 1924 and 9.3 in 1925:

9.39.1
×
\$1
=
\$1.02

\$1 in 1924 has the same "purchasing power" or "buying power" as \$1.02 in 1925.

To get the total inflation rate for the 1 years between 1924 and 1925, we use the following formula:

CPI in 1925 - CPI in 1924CPI in 1924
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

9.3 - 9.19.1
×
100
=
2%

## 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 1925 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 22 Oct. 2021, https://www.officialdata.org/CAD-inflation-rate-in-1925.

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. 