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| Year | Inflation rate, in % |
|---|---|
| 2028 | 1.99 |
| 2027 | 1.96 |
| 2026 | 1.94 |
| 2025 | 1.93 |
| 2024 | 2.43 |
| 2023 | 3.62 |
| 2022 | 6.80 |
| 2021 | 3.40 |
| 2020 | 0.72 |
| 2019 | 1.95 |
| 2018 | 2.27 |
| 2017 | 1.60 |
| 2016 | 1.43 |
| 2015 | 1.13 |
| 2014 | 1.91 |
| 2013 | 0.94 |
| 2012 | 1.52 |
| 2011 | 2.91 |
| 2010 | 1.78 |
| 2009 | 0.30 |
| 2008 | 2.37 |
| 2007 | 2.14 |
| 2006 | 2.02 |
| 2005 | 2.21 |
| 2004 | 1.86 |
| 2003 | 2.76 |
| 2002 | 2.26 |
| 2001 | 2.53 |
| 2000 | 2.72 |
| 1999 | 1.74 |
| 1998 | 1.00 |
| 1997 | 1.62 |
| 1996 | 1.57 |
| 1995 | 2.15 |
| 1994 | 0.17 |
| 1993 | 1.87 |
| 1992 | 1.49 |
| 1991 | 5.63 |
| 1990 | 4.78 |
| 1989 | 4.98 |
| 1988 | 4.03 |
| 1987 | 4.37 |
- Source: IMF - Inflation rate in Canada
- Region: Canada
- Time period: 1987 to 2022
- Published: Oct 2023
Data Analysis and Insights
Peak Inflation Rates
2022 marked a significant peak with an inflation rate of 6.80%, the highest observed in the dataset. This period likely reflects intense economic pressures or specific events driving up prices at an unusually fast pace.Stabilization Post-Peak
Following the peak in 2022, inflation rates showed a trend towards stabilization, with subsequent years (2023-2028) displaying a consistent decrease towards more manageable levels. This pattern indicates effective measures to curb inflation or a natural economic adjustment.Decade Analysis
The 1990s started with notably high inflation rates, peaking at 5.63% in 1991, but saw a remarkable decline towards the end of the decade, reaching as low as 0.17% in 1994. This fluctuation underscores the impact of economic policies and external factors on inflation dynamics.Recent Trends Versus Historical Norms
Inflation rates in the late 2020s appear to align with the historical norm, suggesting a return to pre-2022 economic conditions. The rates in these years contrast sharply with the volatility observed in the early 2020s, indicating a period of economic recovery and stabilization.Long-term Inflation Fluctuations
The dataset illustrates significant fluctuations in inflation rates over the years, with the range of rates from a low of 0.17% to a high of 6.80%. These fluctuations highlight the challenges in maintaining economic stability and the impact of various internal and external pressures on the inflationary environment.Frequently Asked Questions
What was the peak inflation rate observed in the dataset?
How did inflation rates behave following the peak in 2022?
After peaking in 2022, inflation rates consistently decreased between 2023 and 2028, indicating a trend towards stabilization.
How did inflation rates fluctuate in the 1990s?
Inflation rates in the 1990s peaked at 5.63% in 1991 and declined significantly to as low as 0.17% by 1994.
How do recent inflation trends compare with historical norms?
Inflation rates in the late 2020s align with the historical norm, suggesting a return to pre-2022 economic conditions.
Terms and Definitions
Inflation is an economic concept that refers to the gradual increase in the general level of prices of goods and services in a given economy over a certain period of time. As inflation rises, each unit of currency tends to buy fewer goods and services, reducing the purchasing power per unit of money.
The inflation rate is the percentage change in the average level of prices measured over a period of time. Typically, national statistical agencies measure it over one year, but it can be measured over different periods.
The Consumer Price Index (CPI) is a statistical estimate that measures changes in the price level of a market basket of consumer goods and services purchased by households. It is one of the most frequently used statistics for identifying periods of inflation or deflation.
The central bank is a financial institution responsible for managing a state's currency, money supply, and interest rates. In Canada, this institution is the Bank of Canada. It directly controls inflation by adjusting national monetary policy.
Monetary policy is the macroeconomic policy set by the central bank. It involves managing the money supply and interest rates to control inflation and stabilize the economy.
An interest rate is the percentage of a loan amount an individual or business is required to pay back to the lender in addition to the original amount borrowed. They can be adjusted as a part of monetary policy to influence the levels of consumer spending and inflation.
Deflation is the opposite of inflation, representing a decrease in the general price level of goods and services. It increases the real value of money, allowing one to buy more goods with the same amount of money.
Hyperinflation is an extremely high and typically accelerating inflation. It quickly erodes the real value of local currency and creates a situation where the amount of money needed to buy things quickly increases over time.
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