# \$1 in 1940 → \$1.35 in 1947

\$

### Canadian Inflation Rate, \$1 from 1940 to 1947

According to Statistics Canada consumer price index, prices in 1947 are 35.37% higher than average prices since 1940. The Canadian dollar experienced an average inflation rate of 4.42% per year during this period, meaning the real value of a dollar decreased.

In other words, \$1 in 1940 is equivalent in purchasing power to about \$1.35 in 1947, a difference of \$0.35 over 7 years.

The 1940 inflation rate was 5.13%. The inflation rate in 1947 was 14.43%. The 1947 inflation rate is higher compared to the average inflation rate of 3.50% per year between 1947 and 2020.

 Cumulative price change 35.37% Average inflation rate 4.42% Converted amount (\$1 base) \$1.35 Price difference (\$1 base) \$0.35 CPI in 1940 8.200 CPI in 1947 11.100 Inflation in 1940 5.13% Inflation in 1947 14.43%

### Buying power of \$1 in 1940

This chart shows a calculation of buying power equivalence for \$1 in 1940 (price index tracking began in 1914).

For example, if you started with \$1, you would need to end with \$1.35 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$1.35 over time, that means that the "real value" of a single Canadian dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1940 dollars, the chart below shows how \$1 buys less over the past 7 years.

According to Statistics Canada, each of these CAD amounts below is equal in terms of what it could buy at the time:

Year Dollar Value Inflation Rate
1940 \$1.00 5.13%
1941 \$1.06 6.10%
1942 \$1.10 3.45%
1943 \$1.12 2.22%
1944 \$1.10 -2.17%
1945 \$1.12 2.22%
1946 \$1.18 5.43%
1947 \$1.35 14.43%
1948 \$1.48 9.01%
1949 \$1.49 0.83%
1950 \$1.57 5.74%
1951 \$1.74 10.85%
1952 \$1.72 -1.40%
1953 \$1.72 0.00%
1954 \$1.72 0.00%
1955 \$1.73 0.71%
1956 \$1.78 2.82%
1957 \$1.82 2.05%
1958 \$1.87 2.68%
1959 \$1.89 1.31%
1960 \$1.91 1.29%
1961 \$1.91 0.00%
1962 \$1.95 1.91%
1963 \$1.99 1.88%
1964 \$2.02 1.84%
1965 \$2.09 3.01%
1966 \$2.16 3.51%
1967 \$2.24 3.95%
1968 \$2.34 4.35%
1969 \$2.45 4.69%
1970 \$2.48 1.00%
1971 \$2.60 4.93%
1972 \$2.73 5.16%
1973 \$2.99 9.38%
1974 \$3.37 12.65%
1975 \$3.68 9.42%
1976 \$3.89 5.63%
1977 \$4.26 9.40%
1978 \$4.62 8.60%
1979 \$5.07 9.76%
1980 \$5.63 11.06%
1981 \$6.32 12.12%
1982 \$6.90 9.27%
1983 \$7.22 4.59%
1984 \$7.49 3.72%
1985 \$7.82 4.40%
1986 \$8.15 4.21%
1987 \$8.49 4.19%
1988 \$8.82 3.88%
1989 \$9.28 5.26%
1990 \$9.74 4.99%
1991 \$10.11 3.75%
1992 \$10.33 2.17%
1993 \$10.50 1.65%
1994 \$10.52 0.23%
1995 \$10.71 1.74%
1996 \$10.94 2.16%
1997 \$11.02 0.78%
1998 \$11.13 1.00%
1999 \$11.43 2.63%
2000 \$11.79 3.20%
2001 \$11.88 0.72%
2002 \$12.33 3.80%
2003 \$12.59 2.08%
2004 \$12.85 2.13%
2005 \$13.12 2.09%
2006 \$13.34 1.67%
2007 \$13.66 2.38%
2008 \$13.82 1.16%
2009 \$14.00 1.32%
2010 \$14.33 2.35%
2011 \$14.66 2.30%
2012 \$14.78 0.83%
2013 \$14.96 1.24%
2014 \$15.18 1.47%
2015 \$15.43 1.61%
2016 \$15.66 1.50%
2017 \$15.90 1.56%
2018 \$15.95 0.31%
2019 \$16.27 1.99%
2020 \$16.63 2.25%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

### How to Calculate Inflation Rate for \$1, 1940 to 1947

This inflation calculator uses the following inflation rate formula:

CPI in 1947CPI in 1940
×
=

Then plug in historical CPI values. The Canadian CPI was 8.2 in the year 1940 and 11.1 in 1947:

11.18.2
×
\$1
=
\$1.35

\$1 in 1940 has the same "purchasing power" or "buying power" as \$1.35 in 1947.

To get the total inflation rate for the 7 years between 1940 and 1947, we use the following formula:

CPI in 1947 - CPI in 1940CPI in 1940
×
100
=
Cumulative inflation rate (7 years)

Plugging in the values to this equation, we get:

11.1 - 8.28.2
×
100
=
35%

### 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: “\$1 in 1940 → 1947 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 9 Apr. 2020, https://www.officialdata.org/canada/inflation/1940?amount=1&endYear=1947.