# \$100 in 2016 is worth \$106.23 today

\$

## Why a dollar today is worth only 94% of a dollar in 2016

Updated: September 11, 2020

According to Statistics Canada consumer price index, today's prices in 2020 are 6.23% higher than average prices since 2016. This means that a dollar today only buys 94.14% of what it could buy in 2016. The Canadian dollar experienced an average inflation rate of 1.52% per year during this period, causing the real value of a dollar to decrease.

In other words, \$100 in 2016 is equivalent in purchasing power to about \$106.23 in 2020, a difference of \$6.23 over 4 years.

The 2016 inflation rate was 1.50%. The current year-over-year inflation rate (2019 to 2020) is now 2.25%1. If this number holds, \$100 today will be equivalent in buying power to \$102.25 next year.

 Cumulative price change 6.23% Average inflation rate 1.52% Converted amount (\$100 base) \$106.23 Price difference (\$100 base) \$6.23 CPI in 2016 128.400 CPI in 2020 136.400 Inflation in 2016 1.50% Inflation in 2020 2.25%

CAD Inflation since 1914
Annual Rate, Statistics Canada CPI

## Buying power of \$100 in 2016

This chart shows a calculation of buying power equivalence for \$100 in 2016 (price index tracking began in 1914).

For example, if you started with \$100, you would need to end with \$106.23 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$100 is equivalent to \$106.23 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 2016 dollars, the chart below shows how \$100 is worth less over 4 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: 2016-2020
Year Dollar Value Inflation Rate
2016 \$100.00 1.50%
2017 \$101.56 1.56%
2018 \$101.87 0.31%
2019 \$103.89 1.99%
2020 \$106.23 2.25%*
* Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value.

This conversion table shows various other 2016 amounts in today's dollars, based on the 6.23% change in prices:

Conversion Table: Value of a dollar today
Initial value Equivalent value
\$1 dollar in 2016 \$1.06 dollars today
\$5 dollars in 2016 \$5.31 dollars today
\$10 dollars in 2016 \$10.62 dollars today
\$50 dollars in 2016 \$53.12 dollars today
\$100 dollars in 2016 \$106.23 dollars today
\$500 dollars in 2016 \$531.15 dollars today
\$1,000 dollars in 2016 \$1,062.31 dollars today
\$5,000 dollars in 2016 \$5,311.53 dollars today
\$10,000 dollars in 2016 \$10,623.05 dollars today
\$50,000 dollars in 2016 \$53,115.26 dollars today
\$100,000 dollars in 2016 \$106,230.53 dollars today
\$500,000 dollars in 2016 \$531,152.65 dollars today
\$1,000,000 dollars in 2016 \$1,062,305.30 dollars today

## How to Calculate Inflation Rate for \$100 since 2016

Our calculations use the following inflation rate formula to calculate the change in value between 2016 and today:

CPI today CPI in 2016
×
2016 CAD value
=
Today's value

Then plug in historical CPI values. The Canadian CPI was 128.4 in the year 2016 and 136.4 in 2020:

136.4128.4
×
\$100
=
\$106.23

\$100 in 2016 has the same "purchasing power" or "buying power" as \$106.23 in 2020.

To get the total inflation rate for the 4 years between 2016 and 2020, we use the following formula:

CPI in 2020 - CPI in 2016CPI in 2016
×
100
=
Cumulative inflation rate (4 years)

Plugging in the values to this equation, we get:

136.4 - 128.4128.4
×
100
=
6%

## News headlines from 2016

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: “Value of 2016 dollars today | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 28 Sep. 2020, https://www.officialdata.org/canada/inflation/2016?amount=&startYear=&future_pct=.

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.

#### 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.

 Cumulative price change 6.23% Average inflation rate 1.52% Converted amount (\$100 base) \$106.23 Price difference (\$100 base) \$6.23 CPI in 2016 128.400 CPI in 2020 136.400 Inflation in 2016 1.50% Inflation in 2020 2.25%