Canadian inflation rate in 1980: 11.06%

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Inflation in 1980 and its effect on dollar value

Purchasing power decreased by 11.06% in 1980 compared to 1979. On average, you would have to spend 11.06% more money in 1980 than in 1979 for the same item.

In other words, \$1 in 1979 is equivalent in purchasing power to about \$1.11 in 1980.

The 1979 inflation rate was 9.76%. The inflation rate in 1980 was 11.06%. The 1980 inflation rate is higher compared to the average inflation rate of 2.74% per year between 1980 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1980 was 46.20. It was 41.60 in the previous year, 1979. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 11.06% Converted amount (\$1 base) \$1.11 Price difference (\$1 base) \$0.11 CPI in 1979 41.600 CPI in 1980 46.200 Inflation in 1979 9.76% Inflation in 1980 11.06%

How to Calculate Inflation Rate for \$1, 1979 to 1980

Our calculations use the following inflation rate formula to calculate the change in value between 1979 and 1980:

CPI in 1980 CPI in 1979
×
=

Then plug in historical CPI values. The Canadian CPI was 41.6 in the year 1979 and 46.2 in 1980:

46.241.6
×
\$1
=
\$1.11

\$1 in 1979 has the same "purchasing power" or "buying power" as \$1.11 in 1980.

To get the total inflation rate for the 1 years between 1979 and 1980, we use the following formula:

CPI in 1980 - CPI in 1979CPI in 1979
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

46.2 - 41.641.6
×
100
=
11%

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

• Ayatollah Khomeini returns to Iran after fifteen years of exile.
• Ugandan dictator Idi Amin flees to Libya after the Tanzanian army captures Kampala, Uganda's capital.
• Margaret Thatcher becomes Prime Minister of United Kingdom, the first ever woman to hold the position.
• Afghanistan is invaded by the Soviets and overthrowing of President Hafizullah Amin.

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 1980 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 31 May. 2020, https://www.officialdata.org/CAD-inflation-rate-in-1980.