See how prices have changed over time using US and Canadian CPI data. Calculate what a past dollar is worth today.
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Purchasing Power
$
%/yr
Results
Adjusted Value
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Cumulative Inflation
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Avg Annual Rate
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Purchasing Power Change
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Historical Inflation Rates
Period
US Avg
CA Avg
1970s
7.5%
7.4%
1980s
5.5%
5.7%
1990s
3.0%
3.2%
2000s
2.6%
2.4%
2010s
1.9%
1.8%
2020–2022 (peak)
4.3% (9.1% peak Jun'22)
4.2% (8.1% peak Jun'22)
2023–2025 (cooling)
3.4% → 2.7%
3.9% → 2.4%
At 2% inflation, purchasing power halves every 36 years (Rule of 72: 72÷2=36).
Frequently Asked Questions
Canada's CPI peaked at 8.1% in June 2022 — the highest since 1983. Causes: pandemic supply-chain disruptions, Russia-Ukraine war (energy/food), and aggressive monetary stimulus. The Bank of Canada raised rates from 0.25% to 5.0% between March 2022 and July 2023. By early 2025, inflation had returned near the 2% target and the policy rate had been cut to approximately 3.25%.
$70,000/year in expenses today becomes $127,000 in 30 years at 2% inflation. Your portfolio must outpace inflation or you lose real purchasing power. Equities have historically outpaced inflation by ~4–5% real return. Cash and low-yield fixed income often fail to keep up — which is why holding too much cash in early retirement is risky.
Nominal return is the stated return (e.g., 7%). Real return adjusts for inflation: Real ≈ Nominal − Inflation. At 7% nominal with 3% inflation, real return is ~4%. The Fisher equation is more precise: Real = (1 + Nominal) / (1 + Inflation) − 1. Always compare investment returns in real terms to know if you're actually getting ahead.
⚠️ CPI rates are period averages for estimation. Personal inflation varies by spending patterns. Not financial advice.
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