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5.7 Understanding How Inflation Changes the Value of the Dollar

Fig 5.11 shows the conversion of 1970 dollars to 2019 dollars. $40,000 in 1970 is equivalent in purchasing power to about $267,508.20 in 2019, an increase of $227,508.20 over 49 years. The Canadian dollar had an average inflation rate of 3.95% per year between 1970 and 2019, producing a cumulative price increase of 568.77%.

This means that prices in 2019 are 6.69 times as high as average prices since 1970, according to Statistics Canada Consumer Price Index.[1]

Fig 5.11 Value of 1970 amounts in 2019 dollars. Data Source:  Bank of Canada
$10 in 1970 $66.88 in 2019
$50 in 1970 $334.39 in 2019
$100 in 1970 $668.77 in 2019
$500 in 1970 $3,343.85 in 2019
$1,000 in 1970 $6,687.70 in 2019
$5,000 in 1970 $33,438.52 in 2019
$10,000 in 1970 $66,877.05 in 2019
$50,000 in 1970 $334,385.25 in 2019
$100,000 in 1970 $668,770.49 in 2019
$500,000 in 1970 $3,343,852.46 in 2019
$1,000,000 in 1970 $6,687,704.92 in 2019

  1. Webster, I. (n.d.). $40,000 in 1970 → 2019: Canada Inflation Calculator. Official Inflation Data, Alioth Finance. https://www.officialdata.org/1970-CAD-in-2019?amount=40000

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Principles of Macroeconomics Copyright © 2023 by Sharmistha Nag and NSCC is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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