Inflation in 1935 and its effect on dollar value
Purchasing power decreased by 2.78% in 1935 compared to 1934. On average, you would have to spend 2.78% more money in 1935 than in 1934 for the same item.
In other words, $1 in 1934 is equivalent in purchasing power to about $1.03 in 1935.
The 1934 inflation rate was 1.41%. The inflation rate in 1935 was 2.78%. The 1935 inflation rate is lower compared to the average inflation rate of 3.49% per year between 1935 and 2020.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1935 was 7.40. It was 7.20 in the previous year, 1934. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.
⌃
| Average inflation rate | 2.78% |
| Converted amount ($1 base) | $1.03 |
| Price difference ($1 base) | $0.03 |
| CPI in 1934 | 7.200 |
| CPI in 1935 | 7.400 |
| Inflation in 1934 | 1.41% |
| Inflation in 1935 | 2.78% |
How to Calculate Inflation Rate for $1, 1934 to 1935
Our calculations use the following inflation rate formula to calculate the change in value between 1934 and 1935:
CPI in 1935
CPI in 1934
×
1934 CAD value
=
1935 CAD value
Then plug in historical CPI values. The Canadian CPI was 7.2 in the year 1934 and 7.4 in 1935:
7.47.2
×
$1
=
$1.03
$1 in 1934 has the same "purchasing power" or "buying power" as $1.03 in 1935.
To get the total inflation rate for the 1 years between 1934 and 1935, we use the following formula:
CPI in 1935 - CPI in 1934CPI in 1934
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
7.4 - 7.27.2
×
100
=
3%
News headlines from 1934
Politics and news often influence economic performance. Here's what was happening at the time:
- American and Canadian prairies suffer during "The Great Dustbowl", a period of drought and severe dust storms.
- John Dillinger becomes commonly known as America's first Public Enemy Number One.
- Hitler brutally purges the leadership of the Nazi party in an event known as "Night of Long Knives".
- The Assassination of Leningrad mayor Sergey Kirov is used as a pretext by Stalin to start the Great Purge of the Communist party.
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 1935 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 May. 2020, https://www.officialdata.org/CAD-inflation-rate-in-1935.
Special thanks to QuickChart for providing downloadable chart images.
in2013dollars.com is a reference website maintained by the Official Data Foundation.
| Average inflation rate | 2.78% |
| Converted amount ($1 base) | $1.03 |
| Price difference ($1 base) | $0.03 |
| CPI in 1934 | 7.200 |
| CPI in 1935 | 7.400 |
| Inflation in 1934 | 1.41% |
| Inflation in 1935 | 2.78% |
