Question

. Download annual data on the consumer price index for Japan (JPNCPIALLAINMEI) and Canada (CPALCY01CAA661N) from 1961 to 2019. For both Japan and Canada calculate the inflation rate as the annual growth rate of the consumer price index. Chart the two data series on the same graph. How does the inflation rate in Japan compare to the inflation rate in the Canada? In particular, how do the inflation rates in the two countries compare since 1990? Has either country ever experienced negative inflation rates?

Answer 1

Ans: Inflatio rate = (CPI this year- CPI last year )/ CPI laast year *100

So as per anual data on consumer price index for Japan and Canada from 1961 to 2019 ; below is the calculation table of inflation rate of both countries.

observation_date	JPNCPIALLAINMEI	CPALCY01CAA661N	Japan Inflation rate	Canada Inflation rate
1961-01-01	19.29	13.41
1962-01-01	20.61	13.57	6.84	1.21
1963-01-01	22.00	13.80	6.71	1.64
1964-01-01	22.83	14.01	3.80	1.56
1965-01-01	24.35	14.31	6.66	2.14
1966-01-01	25.58	14.74	5.04	3.03
1967-01-01	26.60	15.32	3.99	3.91
1968-01-01	28.02	15.84	5.34	3.39
1969-01-01	29.49	16.33	5.25	3.11
1970-01-01	31.53	16.67	6.92	2.10
1971-01-01	33.55	17.01	6.40	2.01
1972-01-01	35.18	17.76	4.84	4.43
1973-01-01	39.26	19.02	11.61	7.10
1974-01-01	48.38	21.17	23.22	11.29
1975-01-01	54.05	23.49	11.73	10.94
1976-01-01	59.12	25.07	9.37	6.73
1977-01-01	63.94	27.16	8.16	8.33
1978-01-01	66.63	29.43	4.21	8.38
1979-01-01	69.10	32.11	3.70	9.11
1980-01-01	74.48	35.44	7.78	10.35
1981-01-01	78.13	39.85	4.91	12.46
1982-01-01	80.28	44.45	2.74	11.54
1983-01-01	81.80	46.90	1.90	5.51
1984-01-01	83.65	48.88	2.26	4.21
1985-01-01	85.35	51.03	2.03	4.41
1986-01-01	85.86	53.52	0.60	4.88
1987-01-01	85.97	55.91	0.13	4.46
1988-01-01	86.55	58.08	0.68	3.89
1989-01-01	88.52	60.65	2.27	4.41
1990-01-01	91.24	63.25	3.08	4.29
1991-01-01	94.21	67.91	3.25	7.36
1992-01-01	95.87	69.21	1.76	1.93
1993-01-01	97.06	70.21	1.24	1.44
1994-01-01	97.73	69.17	0.70	-1.47
1995-01-01	97.61	70.41	-0.13	1.79
1996-01-01	97.74	71.58	0.14	1.65
1997-01-01	99.45	72.56	1.75	1.38
1998-01-01	100.11	73.70	0.66	1.56
1999-01-01	99.77	74.86	-0.34	1.58
2000-01-01	99.09	76.64	-0.68	2.37
2001-01-01	98.36	78.49	-0.74	2.41
2002-01-01	97.45	80.07	-0.92	2.01
2003-01-01	97.20	81.99	-0.26	2.40
2004-01-01	97.19	83.57	-0.01	1.92
2005-01-01	96.92	85.45	-0.28	2.25
2006-01-01	97.16	86.93	0.25	1.73
2007-01-01	97.22	88.30	0.06	1.57
2008-01-01	98.56	90.15	1.38	2.10
2009-01-01	97.23	90.85	-1.35	0.78
2010-01-01	96.53	91.93	-0.72	1.18
2011-01-01	96.27	94.52	-0.27	2.82
2012-01-01	96.22	96.39	-0.05	1.98
2013-01-01	96.55	97.17	0.35	0.81
2014-01-01	99.22	98.65	2.76	1.52
2015-01-01	100.00	100.00	0.79	1.37
2016-01-01	99.88	100.81	-0.12	0.81
2017-01-01	100.35	101.96	0.47	1.15
2018-01-01	101.33	103.68	0.98	1.69
2019-01-01	101.82	106.03	0.48	2.27

Graphical representation of Both Japan & Canada Inflation Rate

If we compare both country inflation rate the highest inflation rate of japan in the year 1974 was 23.22 and the canada in the year 1982 was 11.52 . other important point after 1976 japan inflation rate was less as compare to canada.

Since 1990 Japan had less inflation rate as compare to canada . In this period 1990 to 2019 Japan had frequently facing negative inflation rate but canada had only one year negative inflation rate the year was 1994.

Both the countries experienced negative inflation rate .

Japan had a negative experience in the years- 1995, 1999 to 2005, 2009 to 2012 and 2016.

Canada had a negative experience in the year- 1994