See how inflation affects the purchasing power of your money over time.
$1,000 in 2000 equals
$1,729.56
in 2025 dollars
Purchasing Power Lost
$1,000 in 2000 only buys $578.18 worth of goods today
$100 in 1990
$210
in 2025
$100 in 2000
$173
in 2025
$100 in 2010
$142
in 2025
$100 in 2020
$120
in 2025
| Year | CPI | Annual Change |
|---|---|---|
| 2024 | 161 | +2.5% |
| 2023 | 157.1 | +3.9% |
| 2022 | 151.2 | +6.8% |
| 2021 | 141.6 | +3.4% |
| 2020 | 137 | +0.7% |
| 2019 | 136 | +1.9% |
| 2018 | 133.4 | +2.3% |
| 2017 | 130.4 | +1.6% |
| 2016 | 128.4 | +1.4% |
| 2015 | 126.6 | +1.1% |
Source: Statistics Canada Consumer Price Index. Bank of Canada CPI Data
Inflation is the rate at which the general price level of goods and services rises over time, measured by the Consumer Price Index (CPI) in Canada. When inflation is 3%, something that cost $100 last year now costs $103. The Bank of Canada targets 2% annual inflation as healthy for the economy.
To calculate inflation, use the CPI values for both years: Inflation Rate = ((CPI in Year 2 - CPI in Year 1) / CPI in Year 1) × 100. For example, if CPI was 150 in 2020 and 165 in 2025, inflation is ((165-150)/150) × 100 = 10% total over those 5 years.
Canada experienced high inflation in 2022 (6.8%, highest since 1991) due to pandemic supply chain issues and global economic factors. Inflation cooled to 3.9% in 2023 and approximately 2.5% in 2024, returning closer to the Bank of Canada's 2% target rate.
Inflation reduces your purchasing power—your money buys less over time. If your income doesn't increase with inflation, you effectively have less money to spend. This is why budgeting and saving are crucial: you need to account for rising costs in groceries, rent, gas, and other essentials when planning your finances.
The Bank of Canada targets 2% annual inflation, with an acceptable range of 1-3%. This target balances economic growth with price stability. The Bank adjusts interest rates to keep inflation within this range—raising rates when inflation is too high, lowering them when it's too low.
To combat inflation: 1) Invest in assets that typically beat inflation (stocks, real estate, inflation-protected bonds), 2) Negotiate salary increases that match or exceed inflation, 3) Budget carefully to identify where rising costs hit hardest, 4) Consider high-interest savings accounts or GICs during high-rate periods, and 5) Avoid keeping large amounts in cash long-term.
Waypoint Budget helps you track spending and save more to stay ahead of rising costs.
Inflation in Canada is measured by Statistics Canada's Consumer Price Index (CPI), which tracks price changes in a basket of goods and services that represent typical Canadian household spending. The Bank of Canada uses monetary policy tools, primarily interest rate adjustments, to keep inflation near its 2% target.
Data based on Statistics Canada CPI. Future years are estimates based on Bank of Canada projections.
Disclaimer: This calculator is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on simplified assumptions and may not reflect your actual situation. Tax laws, contribution limits, and regulations change frequently. Always consult a qualified financial advisor or tax professional before making financial decisions. See our Terms of Service for full details.