Inflation in 2026 and its effect on dollar value
$1 in 2025 is equivalent in purchasing power to about $1.02 today. The dollar had an average inflation rate of 2.22% in the last 12 months. As a result, the real value of a dollar has been decreasing recently. Purchasing power decreased by 2.22% in 2026 compared to 2025. On average, you would have to spend 2.22% more money in 2026 than in 2025 for the same item.
This means that today's prices are 1.02 times as high as average prices since 2025, according to Statistics Canada consumer price index. A dollar today only buys 98.039% of what it could buy back then.
The inflation rate in 2025 was 0.61%. The current inflation rate compared to the end of last year is now 2.22%. If this number holds, $1 today will be equivalent in buying power to $1.02 next year.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2026 is 165.40. It was 161.80 in the previous year, 2025. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.
⌃
| Average inflation rate | 2.22% |
| Converted amount $1 base | $1.02 |
| Price difference $1 base | $0.02 |
| CPI in 2025 | 161.800 |
| CPI in 2026 | 165.400 |
| Inflation in 2025 | 0.61% |
| Inflation in 2026 | 2.22% |
| $1 in 2025 | $1.02 in 2026 |
How to calculate inflation rate for $1 since 2025
Our calculations use the following inflation rate formula to calculate the change in value between 2025 and today:
CPI today CPI in 2025
×
2025 CAD value
=
Today's value
Then plug in historical CPI values. The Canadian CPI was 161.8 in the year 2025 and 165.4 in 2026:
165.4161.8
×
$1
=
$1.02
$1 in 2025 has the same "purchasing power" or "buying power" as $1.02 in 2026.
To get the total inflation rate for the 1 years between 2025 and 2026, we use the following formula:
CPI in 2026 - CPI in 2025CPI in 2025
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
165.4 - 161.8161.8
×
100
=
2%
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 2026 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 6 Jan. 2026, https://www.officialdata.org/CAD-inflation-rate-in-2026.
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 | 2.22% |
| Converted amount $1 base | $1.02 |
| Price difference $1 base | $0.02 |
| CPI in 2025 | 161.800 |
| CPI in 2026 | 165.400 |
| Inflation in 2025 | 0.61% |
| Inflation in 2026 | 2.22% |
| $1 in 2025 | $1.02 in 2026 |