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 (Webster, n.d.).
| $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 |
