$1 in 1985 is worth $1.13 in 1988

Value of $1 from 1985 to 1988

$1 in 1985 is equivalent in purchasing power to about $1.13 in 1988, an increase of $0.13 over 3 years. The dollar had an average inflation rate of 4.19% per year between 1985 and 1988, producing a cumulative price increase of 13.11%.

This means that prices in 1988 are 1.13 times as high as average prices since 1985, according to Statistics Canada consumer price index.

The inflation rate in 1985 was 3.96%. The inflation rate in 1988 was 4.03%. The 1988 inflation rate is higher compared to the average inflation rate of 2.25% per year between 1988 and 2024.


Inflation from 1985 to 1988
Cumulative price change13.11%
Average inflation rate4.19%
Converted amount
$1 base
$1.13
Price difference
$1 base
$0.13
CPI in 198562.975
CPI in 198871.233
Inflation in 19853.96%
Inflation in 19884.03%
$1 in 1985$1.13 in 1988

Recent CAD inflation
Annual Rate, Statistics Canada CPI
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Buying power of $1 in 1985

This chart shows a calculation of buying power equivalence for $1 in 1985 (price index tracking began in 1914).

For example, if you started with $1, you would need to end with $1.13 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $1 is equivalent to $1.13 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 1985 dollars, the chart below shows how $1 is worth less over 3 years.

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

Dollar inflation: 1985-1988
YearDollar ValueInflation Rate
1985$1.003.96%
1986$1.044.19%
1987$1.094.36%
1988$1.134.03%
1989$1.194.98%
1990$1.244.78%
1991$1.315.63%
1992$1.331.49%
1993$1.361.87%
1994$1.360.17%
1995$1.392.15%
1996$1.411.57%
1997$1.431.62%
1998$1.451.00%
1999$1.471.73%
2000$1.512.72%
2001$1.552.53%
2002$1.592.26%
2003$1.632.76%
2004$1.661.86%
2005$1.702.21%
2006$1.732.00%
2007$1.772.14%
2008$1.812.37%
2009$1.820.30%
2010$1.851.78%
2011$1.902.91%
2012$1.931.52%
2013$1.950.94%
2014$1.991.91%
2015$2.011.13%
2016$2.041.43%
2017$2.071.60%
2018$2.122.27%
2019$2.161.95%
2020$2.170.72%
2021$2.253.40%
2022$2.406.80%
2023$2.493.81%
2024$2.521.15%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 1985 amounts in 1988 dollars, based on the 13.11% change in prices:

Conversion: 1985 dollars in 1988
Initial valueEquivalent value
$1 dollar in 1985$1.13 dollars in 1988
$5 dollars in 1985$5.66 dollars in 1988
$10 dollars in 1985$11.31 dollars in 1988
$50 dollars in 1985$56.56 dollars in 1988
$100 dollars in 1985$113.11 dollars in 1988
$500 dollars in 1985$565.57 dollars in 1988
$1,000 dollars in 1985$1,131.14 dollars in 1988
$5,000 dollars in 1985$5,655.68 dollars in 1988
$10,000 dollars in 1985$11,311.37 dollars in 1988
$50,000 dollars in 1985$56,556.83 dollars in 1988
$100,000 dollars in 1985$113,113.67 dollars in 1988
$500,000 dollars in 1985$565,568.35 dollars in 1988
$1,000,000 dollars in 1985$1,131,136.69 dollars in 1988

How to calculate inflation rate for $1, 1985 to 1988

Our calculations use the following inflation rate formula to calculate the change in value between 1985 and 1988:

CPI in 1988 CPI in 1985
×
1985 CAD value
=
1988 CAD value

Then plug in historical CPI values. The Canadian CPI was 62.975 in the year 1985 and 71.23333333 in 1988:

71.2333333362.975
×
$1
=
$1.13

$1 in 1985 has the same "purchasing power" or "buying power" as $1.13 in 1988.

To get the total inflation rate for the 3 years between 1985 and 1988, we use the following formula:

CPI in 1988 - CPI in 1985CPI in 1985
×
100
=
Cumulative inflation rate (3 years)

Plugging in the values to this equation, we get:

71.23333333 - 62.97562.975
×
100
=
13%

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 1985 → 1988 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 26 Mar. 2024, https://www.officialdata.org/canada/inflation/1985?amount=1&endYear=1988.

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.


Ian Webster

About the author

Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College.

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Inflation from 1985 to 1988
Cumulative price change13.11%
Average inflation rate4.19%
Converted amount
$1 base
$1.13
Price difference
$1 base
$0.13
CPI in 198562.975
CPI in 198871.233
Inflation in 19853.96%
Inflation in 19884.03%
$1 in 1985$1.13 in 1988