$1 in 1940 is equivalent in purchasing power to about $1.10 in 1942, an increase of $0.10 over 2 years. The dollar had an average inflation rate of 4.76% per year between 1940 and 1942, producing a cumulative price increase of 9.76%.

This means that prices in 1942 are 1.10 times higher than average prices since 1940, according to Statistics Canada consumer price index.

The 1940 inflation rate was 5.13%. The inflation rate in 1942 was 3.45%. The 1942 inflation rate is lower compared to the average inflation rate of 3.51% per year between 1942 and 2021.

⌃

Cumulative price change | 9.76% |

Average inflation rate | 4.76% |

Converted amount ($1 base) | $1.10 |

Price difference ($1 base) | $0.10 |

CPI in 1940 | 8.200 |

CPI in 1942 | 9.000 |

Inflation in 1940 | 5.13% |

Inflation in 1942 | 3.45% |

$1 in 1940 | $1.10 in 1942 |

This chart shows a calculation of buying power equivalence for $1 in 1940 (price index tracking began in 1914).

For example, if you started with $1, you would need to end with $1.10 in order to "adjust" for inflation (sometimes refered to as "beating inflation").

When $1 is equivalent to $1.10 over time, that means that the "real value" of a single Canadian dollar decreases over time. In other words, a dollar will pay for fewer items at the store.

This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 1940 dollars, the chart below shows how $1 is worth less over 2 years.

According to Statistics Canada, each of these CAD amounts below is equal in terms of what it could buy at the time:

This conversion table shows various other 1940 amounts in 1942 dollars, based on the 9.76% change in prices:

Initial value | Equivalent value |
---|---|

$1 dollar in 1940 | $1.10 dollars in 1942 |

$5 dollars in 1940 | $5.49 dollars in 1942 |

$10 dollars in 1940 | $10.98 dollars in 1942 |

$50 dollars in 1940 | $54.88 dollars in 1942 |

$100 dollars in 1940 | $109.76 dollars in 1942 |

$500 dollars in 1940 | $548.78 dollars in 1942 |

$1,000 dollars in 1940 | $1,097.56 dollars in 1942 |

$5,000 dollars in 1940 | $5,487.80 dollars in 1942 |

$10,000 dollars in 1940 | $10,975.61 dollars in 1942 |

$50,000 dollars in 1940 | $54,878.05 dollars in 1942 |

$100,000 dollars in 1940 | $109,756.10 dollars in 1942 |

$500,000 dollars in 1940 | $548,780.49 dollars in 1942 |

$1,000,000 dollars in 1940 | $1,097,560.98 dollars in 1942 |

Our calculations use the following inflation rate formula to calculate the change in value between 1940 and 1942:

CPI in 1942
CPI in 1940

×

1940 CAD value

=

1942 CAD value

Then plug in historical CPI values. The Canadian CPI was 8.2 in the year 1940 and 9 in 1942:

98.2

×

$1

=

$1 in 1940 has the same "purchasing power" or "buying power" as $1.10 in 1942.

To get the total inflation rate for the 2 years between 1940 and 1942, we use the following formula:

CPI in 1942 - CPI in 1940CPI in 1940

×

100

=

Plugging in the values to this equation, we get:

9 - 8.28.2

×

100

=

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: “$1 in 1940 → 1942 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 15 Oct. 2021, https://www.officialdata.org/canada/inflation/1940?amount=1&endYear=1942.

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.

Cumulative price change | 9.76% |

Average inflation rate | 4.76% |

Converted amount ($1 base) | $1.10 |

Price difference ($1 base) | $0.10 |

CPI in 1940 | 8.200 |

CPI in 1942 | 9.000 |

Inflation in 1940 | 5.13% |

Inflation in 1942 | 3.45% |

$1 in 1940 | $1.10 in 1942 |