# \$1 in 2020 is worth \$0.94 in 2016

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👉 You may be interested in \$1 in 2016 → 2021

## Value of \$1 from 2020 to 2016

\$1 in 2020 is equivalent in purchasing power to about \$0.94 in 2016, an increase of \$-0.06 over 4 years. The dollar had an average inflation rate of 1.52% per year between 2016 and 2020, producing a cumulative price increase of -5.87%.

This means that prices in 2016 are 5.87% lower than average prices since 2020, according to Statistics Canada consumer price index.

The 2016 inflation rate was 1.50%. The inflation rate in 2020 was 2.25%. The 2020 inflation rate is higher compared to the average inflation rate of 0.73% per year between 2020 and 2021.

 Cumulative price change -5.87% Average inflation rate 1.52% Converted amount (\$1 base) \$0.94 Price difference (\$1 base) \$-0.06 CPI in 2020 136.400 CPI in 2016 128.400 Inflation in 2016 1.50% Inflation in 2020 2.25% \$1 in 2020 \$0.94 in 2016

## Buying power of \$1 in 2016

This chart shows a calculation of buying power equivalence for \$1 in 2016 (price index tracking began in 1914).

For example, if you started with \$1, you would need to end with \$0.94 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When \$1 is equivalent to \$0.94 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 \$1 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 \$1.00 1.50%
2017 \$1.02 1.56%
2018 \$1.02 0.31%
2019 \$1.04 1.99%
2020 \$1.06 2.25%
2021 \$1.07 0.73%*
* 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 2020 dollars, based on the -5.87% change in prices:

Conversion: 2016 dollars in 2020
Initial value Equivalent value
\$1 dollar in 2016 \$1.06 dollars in 2020
\$5 dollars in 2016 \$5.31 dollars in 2020
\$10 dollars in 2016 \$10.62 dollars in 2020
\$50 dollars in 2016 \$53.12 dollars in 2020
\$100 dollars in 2016 \$106.23 dollars in 2020
\$500 dollars in 2016 \$531.15 dollars in 2020
\$1,000 dollars in 2016 \$1,062.31 dollars in 2020
\$5,000 dollars in 2016 \$5,311.53 dollars in 2020
\$10,000 dollars in 2016 \$10,623.05 dollars in 2020
\$50,000 dollars in 2016 \$53,115.26 dollars in 2020
\$100,000 dollars in 2016 \$106,230.53 dollars in 2020
\$500,000 dollars in 2016 \$531,152.65 dollars in 2020
\$1,000,000 dollars in 2016 \$1,062,305.30 dollars in 2020

## How to Calculate Inflation Rate for \$1, 2016 to 2020

Our calculations use the following inflation rate formula to calculate the change in value between 2016 and 2020:

CPI in 2016 CPI in 2020
×
=

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

128.4136.4
×
\$1
=
\$0.94

\$1 in 2020 has the same "purchasing power" or "buying power" as \$0.94 in 2016.

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

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

Plugging in the values to this equation, we get:

128.4 - 136.4136.4
×
100
=
-6%

## 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 2020 → 2016 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 23 Jun. 2021, https://www.officialdata.org/canada/inflation/2020?amount=1&endYear=2016.

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.