# Canadian inflation rate in 1946: 5.43%

\$

## Inflation in 1946 and its effect on dollar value

Purchasing power decreased by 5.43% in 1946 compared to 1945. On average, you would have to spend 5.43% more money in 1946 than in 1945 for the same item.

In other words, \$1 in 1945 is equivalent in purchasing power to about \$1.05 in 1946.

The 1945 inflation rate was 2.22%. The inflation rate in 1946 was 5.43%. The 1946 inflation rate is higher compared to the average inflation rate of 3.64% per year between 1946 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1946 was 9.70. It was 9.20 in the previous year, 1945. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 5.43% Converted amount (\$1 base) \$1.05 Price difference (\$1 base) \$0.05 CPI in 1945 9.200 CPI in 1946 9.700 Inflation in 1945 2.22% Inflation in 1946 5.43%

## How to Calculate Inflation Rate for \$1, 1945 to 1946

Our calculations use the following inflation rate formula to calculate the change in value between 1945 and 1946:

CPI in 1946 CPI in 1945
×
=

Then plug in historical CPI values. The Canadian CPI was 9.2 in the year 1945 and 9.7 in 1946:

9.79.2
×
\$1
=
\$1.05

\$1 in 1945 has the same "purchasing power" or "buying power" as \$1.05 in 1946.

To get the total inflation rate for the 1 years between 1945 and 1946, we use the following formula:

CPI in 1946 - CPI in 1945CPI in 1945
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

9.7 - 9.29.2
×
100
=
5%

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

• The USSR captures Budapest from Germany in a battle that kills 159,000 people.
• The US Fleet captures Iwo Jima.
• 1,500 US Navy ships bomb Okinawa: the operation is believed to be the largest of World War II
• Iwo Jima is occupied by America, costing 6,000 American lives and a further 18,000 Japanese lives.
• Buchenwald, the first Nazi concentration camp, is liberated.

## 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 1946 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 May. 2020, https://www.officialdata.org/CAD-inflation-rate-in-1946.