# Canadian inflation rate in 1965: 3.01%

\$

## Inflation in 1965 and its effect on dollar value

Purchasing power decreased by 3.01% in 1965 compared to 1964. On average, you would have to spend 3.01% more money in 1965 than in 1964 for the same item.

In other words, \$1 in 1964 is equivalent in purchasing power to about \$1.03 in 1965.

The 1964 inflation rate was 1.84%. The inflation rate in 1965 was 3.01%. The 1965 inflation rate is lower compared to the average inflation rate of 3.85% per year between 1965 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1965 was 17.10. It was 16.60 in the previous year, 1964. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 3.01% Converted amount (\$1 base) \$1.03 Price difference (\$1 base) \$0.03 CPI in 1964 16.600 CPI in 1965 17.100 Inflation in 1964 1.84% Inflation in 1965 3.01%

## How to Calculate Inflation Rate for \$1, 1964 to 1965

Our calculations use the following inflation rate formula to calculate the change in value between 1964 and 1965:

CPI in 1965 CPI in 1964
×
=

Then plug in historical CPI values. The Canadian CPI was 16.6 in the year 1964 and 17.1 in 1965:

17.116.6
×
\$1
=
\$1.03

\$1 in 1964 has the same "purchasing power" or "buying power" as \$1.03 in 1965.

To get the total inflation rate for the 1 years between 1964 and 1965, we use the following formula:

CPI in 1965 - CPI in 1964CPI in 1964
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

17.1 - 16.616.6
×
100
=
3%

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

• Jomo Kenyatta becomes first President of Kenya after it becomes a republic.
• Nelson Mandela is sentenced to life-long imprisonment in South Africa.
• President Lyndon B. Johnson signs the Civil Rights Act and Voting Rights Act into law.

## 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 1965 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 3 Jun. 2020, https://www.officialdata.org/CAD-inflation-rate-in-1965.