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# Canadian inflation rate in 2017: 1.56%

### Inflation in 2017 and Its Effect on Dollar Value

Purchasing power decreased by 1.56% in 2017 compared to 2016. On average, you would have to spend 1.56% more money in 2017 than in 2016 for the same item.

In other words, \$1 in 2016 is equivalent in purchasing power to about \$1.02 in 2017.

The 2016 inflation rate was 1.50%. The inflation rate in 2017 was 1.56%. The 2017 inflation rate is higher compared to the average inflation rate of 1.51% per year between 2017 and 2020.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2017 was 130.40. It was 128.40 in the previous year, 2016. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 1.56% Converted amount (\$1 base) \$1.02 Price difference (\$1 base) \$0.02 CPI in 2016 128.400 CPI in 2017 130.400 Inflation in 2016 1.50% Inflation in 2017 1.56%

### How to Calculate Inflation Rate for \$1, 2016 to 2017

This inflation calculator uses the following inflation rate formula:

CPI in 2017CPI in 2016
×
=

Then plug in historical CPI values. The Canadian CPI was 128.4 in the year 2016 and 130.4 in 2017:

130.4128.4
×
\$1
=
\$1.02

\$1 in 2016 has the same "purchasing power" or "buying power" as \$1.02 in 2017.

To get the total inflation rate for the 1 years between 2016 and 2017, we use the following formula:

CPI in 2017 - CPI in 2016CPI in 2016
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

130.4 - 128.4128.4
×
100
=
2%

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

• The United Kingdom votes to leave the European Union in a referendum, prompting Prime Minister David Cameron to resign.
• Donald Trump becomes the 45th President of the United States.
• The World Health Organisation confirms the outbreak of the Zika virus.
• Andrei Karlov, the Russian ambassador to Turkey, is assassinated.

### 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 2017 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 27 Jan. 2020, https://www.officialdata.org/CAD-inflation-rate-in-2017.