The following table provides the CPI-Based Price-Adjustment factors for 2017. These factors were based on the actual rate of CPI inflation of 0.9% in 2013, 2.0% in 2014 and 1.1% in 2015.
CPI-Based Price-Adjustment factors for 2017
| Benchmark Year |
2014 |
2015 |
2016 |
| Price-Adjustment Factor |
1.040 |
1.031 |
1.011 |
Based on these factors, one can derive: (1) a maximum allowable cumulative price increase between 2014 and 2017 of 4.0% for patented drug products with Canadian sales in 2014; (2) a maximum allowable cumulative price increase between 2015 and 2017 of 3.1% for patented drug products with Canadian sales in 2015; and (3) a maximum allowable cumulative price increase between 2016 and 2017 of 1.1% for patented drug products with Canadian sales in 2016.
The year-over-year price increase cap for the 12-month period ending December 2017 is 1.7% (=1.5 x Actual Inflation in 2015).