$1 in 1988 is equivalent in purchasing power to about $1.05 in 1989. The dollar had an average inflation rate of 5.26% per year between 1988 and 1989, producing a cumulative price increase of 5.26%. Purchasing power decreased by 5.26% in 1989 compared to 1988. On average, you would have to spend 5.26% more money in 1989 than in 1988 for the same item.

This means that prices in 1989 are 1.05 times higher than average prices since 1988, according to Statistics Canada consumer price index.

The inflation rate in 1988 was 3.88%. The inflation rate in 1989 was 5.26%. The 1989 inflation rate is higher compared to the average inflation rate of 1.86% per year between 1989 and 2021.

Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 1989 was 76.10. It was 72.30 in the previous year, 1988. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.

⌃

Average inflation rate | 5.26% |

Converted amount ($1 base) | $1.05 |

Price difference ($1 base) | $0.05 |

CPI in 1988 | 72.300 |

CPI in 1989 | 76.100 |

Inflation in 1988 | 3.88% |

Inflation in 1989 | 5.26% |

$1 in 1988 | $1.05 in 1989 |

Our calculations use the following inflation rate formula to calculate the change in value between 1988 and 1989:

CPI in 1989
CPI in 1988

×

1988 CAD value

=

1989 CAD value

Then plug in historical CPI values. The Canadian CPI was 72.3 in the year 1988 and 76.1 in 1989:

76.172.3

×

$1

=

$1 in 1988 has the same "purchasing power" or "buying power" as $1.05 in 1989.

To get the total inflation rate for the 1 years between 1988 and 1989, we use the following formula:

CPI in 1989 - CPI in 1988CPI in 1988

×

100

=

Plugging in the values to this equation, we get:

76.1 - 72.372.3

×

100

=

Politics and news often influence economic performance. Here's what was happening at the time:

- The USSR withdraws its troops from Afghanistan.
- Iran and Iraq announce a ceasefire after 8 years of war.
- Approximately 50,000 Kurdish civilians and soldiers are killed by Iraq.
- Mikhail Gorbachev Chairman becomes president of the USSR.
- Benazir Bhutto becomes the first female leader of a Muslim country in Pakistan.

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: “Inflation Rate in 1989 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 6 Dec. 2021, https://www.officialdata.org/CAD-inflation-rate-in-1989.

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.

Average inflation rate | 5.26% |

Converted amount ($1 base) | $1.05 |

Price difference ($1 base) | $0.05 |

CPI in 1988 | 72.300 |

CPI in 1989 | 76.100 |

Inflation in 1988 | 3.88% |

Inflation in 1989 | 5.26% |

$1 in 1988 | $1.05 in 1989 |