Inflation in 2006 and its effect on dollar value
$1 in 2005 is equivalent in purchasing power to about $1.02 in 2006. The dollar had an average inflation rate of 2.00% per year between 2005 and 2006, producing a cumulative price increase of 2.00%. Purchasing power decreased by 2.00% in 2006 compared to 2005. On average, you would have to spend 2.00% more money in 2006 than in 2005 for the same item.
This means that prices in 2006 are 1.02 times as high as average prices since 2005, according to Statistics Canada consumer price index.
The inflation rate in 2005 was 2.21%. The inflation rate in 2006 was 2.00%. The 2006 inflation rate is lower compared to the average inflation rate of 2.11% per year between 2006 and 2024.
Inflation rate is calculated by change in the consumer price index (CPI). The CPI in 2006 was 109.12. It was 106.98 in the previous year, 2005. The difference in CPI between the years is used by Statistics Canada to officially determine inflation.
⌃
| Average inflation rate | 2.00% |
| Converted amount $1 base | $1.02 |
| Price difference $1 base | $0.02 |
| CPI in 2005 | 106.975 |
| CPI in 2006 | 109.117 |
| Inflation in 2005 | 2.21% |
| Inflation in 2006 | 2.00% |
| $1 in 2005 | $1.02 in 2006 |
How to calculate inflation rate for $1, 2005 to 2006
Our calculations use the following inflation rate formula to calculate the change in value between 2005 and 2006:
CPI in 2006 CPI in 2005
×
2005 CAD value
=
2006 CAD value
Then plug in historical CPI values. The Canadian CPI was 106.975 in the year 2005 and 109.1166667 in 2006:
109.1166667106.975
×
$1
=
$1.02
$1 in 2005 has the same "purchasing power" or "buying power" as $1.02 in 2006.
To get the total inflation rate for the 1 years between 2005 and 2006, we use the following formula:
CPI in 2006 - CPI in 2005CPI in 2005
×
100
=
Cumulative inflation rate (1 years)
Plugging in the values to this equation, we get:
109.1166667 - 106.975106.975
×
100
=
2%
Data source & citation
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: “Inflation Rate in 2006 | Canada Inflation Calculator.” Official Inflation Data, Alioth Finance, 30 Oct. 2024, https://www.officialdata.org/CAD-inflation-rate-in-2006.
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.
| Average inflation rate | 2.00% |
| Converted amount $1 base | $1.02 |
| Price difference $1 base | $0.02 |
| CPI in 2005 | 106.975 |
| CPI in 2006 | 109.117 |
| Inflation in 2005 | 2.21% |
| Inflation in 2006 | 2.00% |
| $1 in 2005 | $1.02 in 2006 |