Inflation in 1939 and its effect on dollar value
$1 in 1938 is equivalent in purchasing power to about $1.03 in 1939. The dollar had an average inflation rate of 2.63% per year between 1938 and 1939, producing a cumulative price increase of 2.63%. Purchasing power decreased by 2.63% in 1939 compared to 1938. On average, you would have to spend 2.63% more money in 1939 than in 1938 for the same item.
This means that prices in 1939 are 1.03 times higher than average prices since 1938, according to Statistics Canada consumer price index.
The 1938 inflation rate was -2.56%. The inflation rate in 1939 was 2.63%. The 1939 inflation rate is lower compared to the average inflation rate of 3.56% per year between 1939 and 2021.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1939 was 7.80. It was 7.60 in the previous year, 1938. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.
⌃
| Average inflation rate | 2.63% |
| Converted amount ($1 base) | $1.03 |
| Price difference ($1 base) | $0.03 |
| CPI in 1938 | 7.600 |
| CPI in 1939 | 7.800 |
| Inflation in 1938 | -2.56% |
| Inflation in 1939 | 2.63% |
| $1 in 1938 | $1.03 in 1939 |
How to Calculate Inflation Rate for $1, 1938 to 1939
Our calculations use the following inflation rate formula to calculate the change in value between 1938 and 1939:
CPI in 1939
CPI in 1938
×
1938 CAD value
=
1939 CAD value
Then plug in historical CPI values. The Canadian CPI was 7.6 in the year 1938 and 7.8 in 1939:
7.87.6
×
$1
=
$1.03
$1 in 1938 has the same "purchasing power" or "buying power" as $1.03 in 1939.
To get the total inflation rate for the 1 years between 1938 and 1939, we use the following formula:
CPI in 1939 - CPI in 1938CPI in 1938
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
7.8 - 7.67.6
×
100
=
3%
News headlines from 1938
Politics and news often influence economic performance. Here's what was happening at the time:
- Anthony Eden resigns as United Kingdom's Foreign Secretary after stating that Prime Minister Neville Chamberlain has appeased Nazi Germany.
- Czechoslovakia is forced to give territory to Germany after the Treaty of Munich was signed by Hitler, Mussolini, Daladier and Chamberlain.
- Joseph Kennedy is named the 44th US Ambassador to the United Kingdom.
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 1939 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 7 May. 2021, https://www.officialdata.org/CAD-inflation-rate-in-1939.
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.
| Average inflation rate | 2.63% |
| Converted amount ($1 base) | $1.03 |
| Price difference ($1 base) | $0.03 |
| CPI in 1938 | 7.600 |
| CPI in 1939 | 7.800 |
| Inflation in 1938 | -2.56% |
| Inflation in 1939 | 2.63% |
| $1 in 1938 | $1.03 in 1939 |