# Canadian inflation rate in 1981: 12.47%

\$

## Inflation in 1981 and its effect on dollar value

\$1 in 1980 is equivalent in purchasing power to about \$1.12 in 1981. The dollar had an average inflation rate of 12.47% per year between 1980 and 1981, producing a cumulative price increase of 12.47%. Purchasing power decreased by 12.47% in 1981 compared to 1980. On average, you would have to spend 12.47% more money in 1981 than in 1980 for the same item.

This means that prices in 1981 are 1.12 times as high as average prices since 1980, according to Statistics Canada consumer price index.

The inflation rate in 1980 was 10.13%. The inflation rate in 1981 was 12.47%. The 1981 inflation rate is higher compared to the average inflation rate of 2.87% per year between 1981 and 2023.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1981 was 49.53. It was 44.03 in the previous year, 1980. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 12.47% Converted amount\$1 base \$1.12 Price difference\$1 base \$0.12 CPI in 1980 44.033 CPI in 1981 49.525 Inflation in 1980 10.13% Inflation in 1981 12.47% \$1 in 1980 \$1.12 in 1981

## How to calculate inflation rate for \$1, 1980 to 1981

Our calculations use the following inflation rate formula to calculate the change in value between 1980 and 1981:

CPI in 1981 CPI in 1980
×
=

Then plug in historical CPI values. The Canadian CPI was 44.03333333 in the year 1980 and 49.525 in 1981:

49.52544.03333333
×
\$1
=
\$1.12

\$1 in 1980 has the same "purchasing power" or "buying power" as \$1.12 in 1981.

To get the total inflation rate for the 1 years between 1980 and 1981, we use the following formula:

CPI in 1981 - CPI in 1980CPI in 1980
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

49.525 - 44.0333333344.03333333
×
100
=
12%

## 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 1981 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 22 Sep. 2023, https://www.officialdata.org/CAD-inflation-rate-in-1981.

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. 