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# Canadian inflation rate in 2008: 1.16%

### Inflation in 2008 and Its Effect on Dollar Value

Purchasing power decreased by 1.16% in 2008 compared to 2007. On average, you would have to spend 1.16% more money in 2008 than in 2007 for the same item.

In other words, \$1 in 2007 is equivalent in purchasing power to about \$1.01 in 2008.

The 2007 inflation rate was 2.38%. The inflation rate in 2008 was 1.16%. The 2008 inflation rate is lower compared to the average inflation rate of 1.56% per year between 2008 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2008 was 113.30. It was 112.00 in the previous year, 2007. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 1.16% Converted amount (\$1 base) \$1.01 Price difference (\$1 base) \$0.01 CPI in 2007 112.000 CPI in 2008 113.300 Inflation in 2007 2.38% Inflation in 2008 1.16%

### How to Calculate Inflation Rate for \$1, 2007 to 2008

This inflation calculator uses the following inflation rate formula:

CPI in 2008CPI in 2007
×
=

Then plug in historical CPI values. The Canadian CPI was 112 in the year 2007 and 113.3 in 2008:

113.3112
×
\$1
=
\$1.01

\$1 in 2007 has the same "purchasing power" or "buying power" as \$1.01 in 2008.

To get the total inflation rate for the 1 years between 2007 and 2008, we use the following formula:

CPI in 2008 - CPI in 2007CPI in 2007
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

113.3 - 112112
×
100
=
1%

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

• The British Army withdraws from Northern Ireland, marking the end of, operation Banner - the longest operation in British military history.
• The South Korean President enters North Korea, crossing the Military Demarcation Line, to the second Inter-Korean Summit with the leader of North Korea.
• Bulgaria and Romania join the European Union. Aside from Irish, languages of the two countries become official EU languages, amongst 20 others.
• Slovenia becomes the 13th Eurozone country, after adopting the Euro currency.

### 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 2008 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 29 Jan. 2020, https://www.officialdata.org/CAD-inflation-rate-in-2008.