# Canadian inflation rate in 2004: 2.13%

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### Inflation in 2004 and Its Effect on Dollar Value

Purchasing power decreased by 2.13% in 2004 compared to 2003. On average, you would have to spend 2.13% more money in 2004 than in 2003 for the same item.

In other words, \$1 in 2003 is equivalent in purchasing power to about \$1.02 in 2004.

The 2003 inflation rate was 2.08%. The inflation rate in 2004 was 2.13%. The 2004 inflation rate is higher compared to the average inflation rate of 1.62% per year between 2004 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2004 was 105.40. It was 103.20 in the previous year, 2003. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 2.13% Converted amount (\$1 base) \$1.02 Price difference (\$1 base) \$0.02 CPI in 2003 103.200 CPI in 2004 105.400 Inflation in 2003 2.08% Inflation in 2004 2.13%

### How to Calculate Inflation Rate for \$1, 2003 to 2004

This inflation calculator uses the following inflation rate formula:

CPI in 2004CPI in 2003
×
=

Then plug in historical CPI values. The Canadian CPI was 103.2 in the year 2003 and 105.4 in 2004:

105.4103.2
×
\$1
=
\$1.02

\$1 in 2003 has the same "purchasing power" or "buying power" as \$1.02 in 2004.

To get the total inflation rate for the 1 years between 2003 and 2004, we use the following formula:

CPI in 2004 - CPI in 2003CPI in 2003
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

105.4 - 103.2103.2
×
100
=
2%

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

• Despite a lack of support from the United Nations, a coalition lead by America and Britain invades Iraq.
• Baghdad falls, ending the invasion of Iraq.
• 10 new members are admitted to the European Union after signing the Treaty of Accession in Athens.

### 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 2004 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 9 Apr. 2020, https://www.officialdata.org/CAD-inflation-rate-in-2004.