Inflation in 1989 and its effect on dollar value
$1 in 1988 is equivalent in purchasing power to about $1.05 in 1989. The dollar had an average inflation rate of 4.98% per year between 1988 and 1989, producing a cumulative price increase of 4.98%. Purchasing power decreased by 4.98% in 1989 compared to 1988. On average, you would have to spend 4.98% more money in 1989 than in 1988 for the same item.
This means that prices in 1989 are 1.05 times as high as average prices since 1988, according to Statistics Canada consumer price index.
The inflation rate in 1988 was 4.03%. The inflation rate in 1989 was 4.98%. The 1989 inflation rate is higher compared to the average inflation rate of 2.17% per year between 1989 and 2024.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1989 was 74.78. It was 71.23 in the previous year, 1988. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.
⌃
| Average inflation rate | 4.98% |
| Converted amount $1 base | $1.05 |
| Price difference $1 base | $0.05 |
| CPI in 1988 | 71.233 |
| CPI in 1989 | 74.783 |
| Inflation in 1988 | 4.03% |
| Inflation in 1989 | 4.98% |
| $1 in 1988 | $1.05 in 1989 |
How to calculate inflation rate for $1, 1988 to 1989
Our calculations use the following inflation rate formula to calculate the change in value between 1988 and 1989:
CPI in 1989 CPI in 1988
×
1988 CAD value
=
1989 CAD value
Then plug in historical CPI values. The Canadian CPI was 71.23333333 in the year 1988 and 74.78333333 in 1989:
74.7833333371.23333333
×
$1
=
$1.05
$1 in 1988 has the same "purchasing power" or "buying power" as $1.05 in 1989.
To get the total inflation rate for the 1 years between 1988 and 1989, we use the following formula:
CPI in 1989 - CPI in 1988CPI in 1988
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
74.78333333 - 71.2333333371.23333333
×
100
=
5%
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 1989 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 9 Dec. 2024, https://www.officialdata.org/CAD-inflation-rate-in-1989.
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.
| Average inflation rate | 4.98% |
| Converted amount $1 base | $1.05 |
| Price difference $1 base | $0.05 |
| CPI in 1988 | 71.233 |
| CPI in 1989 | 74.783 |
| Inflation in 1988 | 4.03% |
| Inflation in 1989 | 4.98% |
| $1 in 1988 | $1.05 in 1989 |