2022 CPI-Based Price-Adjustment Factors for Patented Drug Products
The following table provides the CPI-Based Price-Adjustment factors for 2022. These factors were based on the actual rate of CPI inflation of 2.3% in 2018, 2.0% in 2019, and 0.7% in 2020.
CPI-Based Price-Adjustment factors for 2022
| Benchmark Year | 2019 |
2020 |
2021 |
|---|---|---|---|
| Price-Adjustment Factor | 1.050 |
1.027 |
1.007 |
Based on these factors, one can derive: (1) a maximum allowable cumulative price increase of 5.0% between 2019 and 2022 for patented medicines with Canadian sales in 2019; (2) a maximum allowable cumulative price increase of 2.7% between 2020 and 2022 for patented medicines with Canadian sales in 2020; and (3) a maximum allowable cumulative price increase of 0.7% between 2021 and 2022 for patented medicines with Canadian sales in 2021.
The year-over-year price increase cap for the 12-month period ending December 2022 is 1.1% (=1.5 x Actual Inflation in 2020).
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