# Canadian inflation rate in 2007: 2.38%

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### Inflation in 2007 and Its Effect on Dollar Value

Purchasing power decreased by 2.38% in 2007 compared to 2006. On average, you would have to spend 2.38% more money in 2007 than in 2006 for the same item.

In other words, \$1 in 2006 is equivalent in purchasing power to about \$1.02 in 2007.

The 2006 inflation rate was 1.67%. The inflation rate in 2007 was 2.38%. The 2007 inflation rate is higher compared to the average inflation rate of 1.53% per year between 2007 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2007 was 112.00. It was 109.40 in the previous year, 2006. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 2.38% Converted amount (\$1 base) \$1.02 Price difference (\$1 base) \$0.02 CPI in 2006 109.400 CPI in 2007 112.000 Inflation in 2006 1.67% Inflation in 2007 2.38%

### How to Calculate Inflation Rate for \$1, 2006 to 2007

This inflation calculator uses the following inflation rate formula:

CPI in 2007CPI in 2006
×
=

Then plug in historical CPI values. The Canadian CPI was 109.4 in the year 2006 and 112 in 2007:

112109.4
×
\$1
=
\$1.02

\$1 in 2006 has the same "purchasing power" or "buying power" as \$1.02 in 2007.

To get the total inflation rate for the 1 years between 2006 and 2007, we use the following formula:

CPI in 2007 - CPI in 2006CPI in 2006
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

112 - 109.4109.4
×
100
=
2%

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

• Nepali security forces injure 243 pro-democracy protesters.
• North Kora is alleged to have tested its first nuclear device.

### 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 2007 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 9 Apr. 2020, https://www.officialdata.org/CAD-inflation-rate-in-2007.