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# Canadian inflation rate in 1933: -2.74%

### Inflation in 1933 and Its Effect on Dollar Value

Purchasing power increased by 2.74% in 1933 compared to 1932. On average, you would have to spend 2.74% less money in 1933 than in 1932 for the same item. This is an example of deflation.

In other words, \$1 in 1932 is equivalent in purchasing power to about \$0.97 in 1933.

The 1932 inflation rate was -7.59%. The inflation rate in 1933 was -2.74%. The 1933 inflation rate is lower compared to the average inflation rate of 3.46% per year between 1933 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1933 was 7.10. It was 7.30 in the previous year, 1932. The difference in CPI between the years is used by Statistics Canada to officially determine inflation. Because the 1933 CPI is less than 1932 CPI, negative inflation (also known as deflation) has occurred.

 Average inflation rate -2.74% Converted amount (\$1 base) \$0.97 Price difference (\$1 base) \$-0.03 CPI in 1932 7.300 CPI in 1933 7.100 Inflation in 1932 -7.59% Inflation in 1933 -2.74%

### How to Calculate Inflation Rate for \$1, 1932 to 1933

This inflation calculator uses the following inflation rate formula:

CPI in 1933CPI in 1932
×
=

Then plug in historical CPI values. The Canadian CPI was 7.3 in the year 1932 and 7.1 in 1933:

7.17.3
×
\$1
=
\$0.97

\$1 in 1932 has the same "purchasing power" or "buying power" as \$0.97 in 1933.

To get the total inflation rate for the 1 years between 1932 and 1933, we use the following formula:

CPI in 1933 - CPI in 1932CPI in 1932
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

7.1 - 7.37.3
×
100
=
-3%

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

• Opening of the Sydney Harbour Bridge.
• The first female transatlantic solo flight is completed by Amelia Earhart.
• The British Broadcasting Corporation begins overseas transmission.

### 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 1933 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 23 Jan. 2020, https://www.officialdata.org/CAD-inflation-rate-in-1933.