# Canadian inflation rate in 2021: 3.40%

\$

## Inflation in 2021 and its effect on dollar value

\$1 in 2020 is equivalent in purchasing power to about \$1.03 in 2021. The dollar had an average inflation rate of 3.40% per year between 2020 and 2021, producing a cumulative price increase of 3.40%. Purchasing power decreased by 3.40% in 2021 compared to 2020. On average, you would have to spend 3.40% more money in 2021 than in 2020 for the same item.

This means that prices in 2021 are 1.03 times higher than average prices since 2020, according to Statistics Canada consumer price index.

The inflation rate in 2020 was 0.72%. The inflation rate in 2021 was 3.40%.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2021 was 141.61. It was 136.96 in the previous year, 2020. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

 Average inflation rate 3.40% Converted amount (\$1 base) \$1.03 Price difference (\$1 base) \$0.03 CPI in 2020 136.958 CPI in 2021 141.608 Inflation in 2020 0.72% Inflation in 2021 3.40% \$1 in 2020 \$1.03 in 2021

## How to calculate inflation rate for \$1, 2020 to 2021

Our calculations use the following inflation rate formula to calculate the change in value between 2020 and 2021:

CPI in 2021 CPI in 2020
×
=

Then plug in historical CPI values. The Canadian CPI was 136.9583333 in the year 2020 and 141.6083333 in 2021:

141.6083333136.9583333
×
\$1
=
\$1.03

\$1 in 2020 has the same "purchasing power" or "buying power" as \$1.03 in 2021.

To get the total inflation rate for the 1 years between 2020 and 2021, we use the following formula:

CPI in 2021 - CPI in 2020CPI in 2020
×
100
=
Cumulative inflation rate (1 years)

Plugging in the values to this equation, we get:

141.6083333 - 136.9583333136.9583333
×
100
=
3%

## 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 2021 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 Jun. 2022, https://www.officialdata.org/CAD-inflation-rate-in-2021.

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. 