# Canadian inflation rate in 1986: 4.19%

\$

## Inflation in 1986 and its effect on dollar value

\$1 in 1985 is equivalent in purchasing power to about \$1.04 in 1986. The dollar had an average inflation rate of 4.19% per year between 1985 and 1986, producing a cumulative price increase of 4.19%. Purchasing power decreased by 4.19% in 1986 compared to 1985. On average, you would have to spend 4.19% more money in 1986 than in 1985 for the same item.

This means that prices in 1986 are 1.04 times higher than average prices since 1985, according to Statistics Canada consumer price index.

The inflation rate in 1985 was 3.96%. The inflation rate in 1986 was 4.19%. The 1986 inflation rate is higher compared to the average inflation rate of 2.36% per year between 1986 and 2022.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1986 was 65.62. It was 62.98 in the previous year, 1985. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 4.19% Converted amount (\$1 base) \$1.04 Price difference (\$1 base) \$0.04 CPI in 1985 62.975 CPI in 1986 65.617 Inflation in 1985 3.96% Inflation in 1986 4.19% \$1 in 1985 \$1.04 in 1986

## How to calculate inflation rate for \$1, 1985 to 1986

Our calculations use the following inflation rate formula to calculate the change in value between 1985 and 1986:

CPI in 1986 CPI in 1985
×
=

Then plug in historical CPI values. The Canadian CPI was 62.975 in the year 1985 and 65.61666667 in 1986:

65.6166666762.975
×
\$1
=
\$1.04

\$1 in 1985 has the same "purchasing power" or "buying power" as \$1.04 in 1986.

To get the total inflation rate for the 1 years between 1985 and 1986, we use the following formula:

CPI in 1986 - CPI in 1985CPI in 1985
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

65.61666667 - 62.97562.975
×
100
=
4%

## 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 1986 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 6 Aug. 2022, https://www.officialdata.org/CAD-inflation-rate-in-1986.

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. 