Inflation Canada 1989
Average inflation: 5.0%
Inflation in 1989
Inflation is very high at 5.0%, far above the ECB target.
Peak and Trough
The highest inflation was in July at 5.3%. The lowest inflation was in January at 4.3%.
- Highest month
- July: 5.3%
- Lowest month
- January: 4.3%
- Difference
- 1.0 percentage points
- Months with data
- 12 of 12
Historical Context
Inflation is 0.7 percentage points higher than the 5-year average of 4.3%.
- 5-year average
- 4.3%
- 10-year average
- 6.5%
- All-time high (1981)
- 12.5%
- All-time low (1971)
- 2.7%
Trend
Over the period 1987-1989, inflation has remained relatively stable. Compared to 1988, inflation has risen by 1.0 percentage points.
- Change vs. previous year
- +1.0 percentage points
- Largest monthly swing
- July: +1.4 percentage points
ECB Target
Inflation is 3.0 percentage points above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this high inflation rate, purchasing power rapidly decreases. This has a major impact on households, especially without adequate salary increases.
What you could buy for CA$100 this year will cost approximately CA$105 next year at this inflation rate.
Multi-year trend
Monthly figures 1989
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 1988 |
|---|---|---|
| January | 4.3% | +0.3 |
| February | 4.6% | +0.6 |
| March | 4.5% | +0.2 |
| April | 4.5% | +0.5 |
| May | 5.1% | +1.1 |
| June | 5.2% | +1.3 |
| July | 5.3% | +1.4 |
| August | 5.3% | +1.4 |
| September | 5.3% | +1.2 |
| October | 5.1% | +0.8 |
| November | 5.3% | +1.3 |
| December | 5.3% | +1.4 |
| Average | 5.0% |
Data source
Data from OECD. Last updated: 17/12/2025.