Canadian inflation rate in 1989: 4.98%

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.


Inflation from 1988 to 1989
Average inflation rate4.98%
Converted amount
$1 base
$1.05
Price difference
$1 base
$0.05
CPI in 198871.233
CPI in 198974.783
Inflation in 19884.03%
Inflation in 19894.98%
$1 in 1988$1.05 in 1989

Recent CAD inflation
Annual Rate, Statistics Canada CPI
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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, 14 Nov. 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.


Ian Webster

About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

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Inflation from 1988 to 1989
Average inflation rate4.98%
Converted amount
$1 base
$1.05
Price difference
$1 base
$0.05
CPI in 198871.233
CPI in 198974.783
Inflation in 19884.03%
Inflation in 19894.98%
$1 in 1988$1.05 in 1989