The 1978 trilogy of Supreme Court of Canada cases decided that the upper limit (or cap) on non-pecuniary general damages for pain and suffering was $100, 000. The Court indicated that the upper limit of $100, 000 can be increased by the rate of inflation. However, no specific direction was provided by the Court as to how the rate of inflation is to be calculated.
The most commonly used indicator of inflation is the Consumer Price Index (CPI). The CPI is a measure of the average price of a fixed basket of consumer goods and services. CPI data is collected and reported by Statistics Canada on a monthly basis. The rate of inflation is the percentage change in the CPI index from one time period to the next time period.
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