\$

# Canadian inflation rate in 1981: 12.12%

### Inflation in 1981 and Its Effect on Dollar Value

Purchasing power decreased by 12.12% in 1981 compared to 1980. On average, you would have to spend 12.12% more money in 1981 than in 1980 for the same item.

In other words, \$1 in 1980 is equivalent in purchasing power to about \$1.12 in 1981.

The 1980 inflation rate was 11.06%. The inflation rate in 1981 was 12.12%. The 1981 inflation rate is higher compared to the average inflation rate of 2.51% per year between 1981 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1981 was 51.80. It was 46.20 in the previous year, 1980. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 12.12% Converted amount (\$1 base) \$1.12 Price difference (\$1 base) \$0.12 CPI in 1980 46.200 CPI in 1981 51.800 Inflation in 1980 11.06% Inflation in 1981 12.12%

### How to Calculate Inflation Rate for \$1, 1980 to 1981

This inflation calculator uses the following inflation rate formula:

CPI in 1981CPI in 1980
×
=

Then plug in historical CPI values. The Canadian CPI was 46.2 in the year 1980 and 51.8 in 1981:

51.846.2
×
\$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:

51.8 - 46.246.2
×
100
=
12%

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

• Princess Victoria is crowned Princess of Sweden.
• Iranian protesters storm the Russian embassy in Iran.
• Abdou Diouf is elected president of Senegal after being Prime Minister for ten years.
• Cable News Network (CNN) is transmitted for the first time.
• Saddam Hussein, President of Iraq, declares a holy war on Iran.

### 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, 24 Jan. 2020, https://www.officialdata.org/CAD-inflation-rate-in-1981.