\$

# Canadian inflation rate in 1978: 8.60%

### Inflation in 1978 and Its Effect on Dollar Value

Purchasing power decreased by 8.60% in 1978 compared to 1977. On average, you would have to spend 8.60% more money in 1978 than in 1977 for the same item.

In other words, \$1 in 1977 is equivalent in purchasing power to about \$1.09 in 1978.

The 1977 inflation rate was 9.40%. The inflation rate in 1978 was 8.60%. The 1978 inflation rate is higher compared to the average inflation rate of 3.10% per year between 1978 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1978 was 37.90. It was 34.90 in the previous year, 1977. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 8.60% Converted amount (\$1 base) \$1.09 Price difference (\$1 base) \$0.09 CPI in 1977 34.900 CPI in 1978 37.900 Inflation in 1977 9.40% Inflation in 1978 8.60%

### How to Calculate Inflation Rate for \$1, 1977 to 1978

This inflation calculator uses the following inflation rate formula:

CPI in 1978CPI in 1977
×
=

Then plug in historical CPI values. The Canadian CPI was 34.9 in the year 1977 and 37.9 in 1978:

37.934.9
×
\$1
=
\$1.09

\$1 in 1977 has the same "purchasing power" or "buying power" as \$1.09 in 1978.

To get the total inflation rate for the 1 years between 1977 and 1978, we use the following formula:

CPI in 1978 - CPI in 1977CPI in 1977
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

37.9 - 34.934.9
×
100
=
9%

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

• Apple Computer incorperated by Steve Jobs, Steve Wozniak, and Ronald Wayne.
• The Hindu Kubh Mela gathered 15,000,000 people, making it (at the time) the biggest crowd gathering in history.
• First Apple II computers are shipped.
• The last Guillotine execution was performed on Hamida Djandoubi, convicted torturer and murderer.

### 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 1978 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 25 Jan. 2020, https://www.officialdata.org/CAD-inflation-rate-in-1978.