Statistics Canada's Consumer Price Index (CPI) data is used in this inflation calculator to calculate Canada's current and historical inflation rates. The Consumer Price Index is a measure of prices of goods and services over time. Changes in the CPI reflect the level of price inflation experienced over a certain period of time. In Canada, inflation is commonly reported as the 12-month percentage change in the CPI.
This inflation calculator lets you determine how inflation has affected the value of the Canadian Dollar, starting from as early as 1914 up to the present day. Since prices across Canada aren't the same, you can also customize the location to match your province. This allows you to get a more localized inflation rate for your area.
The chart above visually represents how the value of your money changes over time due to inflation. It helps illustrate the concept of purchasing power and how it diminishes over the years if the inflation rate outpaces any interest or investment returns.
For more detailed historical inflation data, visit the Statistics Canada website.
To learn more about economic indicators and financial planning in Canada, check out the Bank of Canada's educational resources.