Inflation in 1975 and its effect on dollar value
Purchasing power decreased by 9.42% in 1975 compared to 1974. On average, you would have to spend 9.42% more money in 1975 than in 1974 for the same item.
In other words, $1 in 1974 is equivalent in purchasing power to about $1.09 in 1975.
The 1974 inflation rate was 12.65%. The inflation rate in 1975 was 9.42%. The 1975 inflation rate is higher compared to the average inflation rate of 3.41% per year between 1975 and 2020.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1975 was 30.20. It was 27.60 in the previous year, 1974. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.
⌃
| Average inflation rate | 9.42% |
| Converted amount ($1 base) | $1.09 |
| Price difference ($1 base) | $0.09 |
| CPI in 1974 | 27.600 |
| CPI in 1975 | 30.200 |
| Inflation in 1974 | 12.65% |
| Inflation in 1975 | 9.42% |
How to Calculate Inflation Rate for $1, 1974 to 1975
Our calculations use the following inflation rate formula to calculate the change in value between 1974 and 1975:
CPI in 1975
CPI in 1974
×
1974 CAD value
=
1975 CAD value
Then plug in historical CPI values. The Canadian CPI was 27.6 in the year 1974 and 30.2 in 1975:
30.227.6
×
$1
=
$1.09
$1 in 1974 has the same "purchasing power" or "buying power" as $1.09 in 1975.
To get the total inflation rate for the 1 years between 1974 and 1975, we use the following formula:
CPI in 1975 - CPI in 1974CPI in 1974
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
30.2 - 27.627.6
×
100
=
9%
News headlines from 1974
Politics and news often influence economic performance. Here's what was happening at the time:
- Ayatollah Khomeini, appeals for an Islamic republic of Iran.
- The 1,000th victim of the Northern Ireland conflict between republican and loyalist paramilitaries is taken.
- President Richard Nixon announces his resignation.
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 1975 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 11 Aug. 2020, https://www.officialdata.org/CAD-inflation-rate-in-1975.
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 | 9.42% |
| Converted amount ($1 base) | $1.09 |
| Price difference ($1 base) | $0.09 |
| CPI in 1974 | 27.600 |
| CPI in 1975 | 30.200 |
| Inflation in 1974 | 12.65% |
| Inflation in 1975 | 9.42% |