Inflation in 2005 and its effect on dollar value
$1 in 2004 is equivalent in purchasing power to about $1.02 in 2005. The dollar had an average inflation rate of 2.09% per year between 2004 and 2005, producing a cumulative price increase of 2.09%. Purchasing power decreased by 2.09% in 2005 compared to 2004. On average, you would have to spend 2.09% more money in 2005 than in 2004 for the same item.
This means that prices in 2005 are 1.02 times higher than average prices since 2004, according to Statistics Canada consumer price index.
The 2004 inflation rate was 2.13%. The inflation rate in 2005 was 2.09%. The 2005 inflation rate is higher compared to the average inflation rate of 1.54% per year between 2005 and 2021.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2005 was 107.60. It was 105.40 in the previous year, 2004. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.
⌃
| Average inflation rate | 2.09% |
| Converted amount ($1 base) | $1.02 |
| Price difference ($1 base) | $0.02 |
| CPI in 2004 | 105.400 |
| CPI in 2005 | 107.600 |
| Inflation in 2004 | 2.13% |
| Inflation in 2005 | 2.09% |
| $1 in 2004 | $1.02 in 2005 |
How to Calculate Inflation Rate for $1, 2004 to 2005
Our calculations use the following inflation rate formula to calculate the change in value between 2004 and 2005:
CPI in 2005
CPI in 2004
×
2004 CAD value
=
2005 CAD value
Then plug in historical CPI values. The Canadian CPI was 105.4 in the year 2004 and 107.6 in 2005:
107.6105.4
×
$1
=
$1.02
$1 in 2004 has the same "purchasing power" or "buying power" as $1.02 in 2005.
To get the total inflation rate for the 1 years between 2004 and 2005, we use the following formula:
CPI in 2005 - CPI in 2004CPI in 2004
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
107.6 - 105.4105.4
×
100
=
2%
News headlines from 2004
Politics and news often influence economic performance. Here's what was happening at the time:
- The Humanitarian Ceasefire Agreement is signed by the Sudanese government and two rebel groups.
- Massachusetts becomes the first United States state to legalize same-sex marriage.
- The Indonesian elections are won by Susilo Bambang Yudhoyono.
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 2005 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 17 May. 2021, https://www.officialdata.org/CAD-inflation-rate-in-2005.
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 | 2.09% |
| Converted amount ($1 base) | $1.02 |
| Price difference ($1 base) | $0.02 |
| CPI in 2004 | 105.400 |
| CPI in 2005 | 107.600 |
| Inflation in 2004 | 2.13% |
| Inflation in 2005 | 2.09% |
| $1 in 2004 | $1.02 in 2005 |