The annual inflation rate in Canada eased to 1.8% in December of 2024 from 1.9% in the previous month, slightly below market expectations that it would remain at 1.9%, to mark the softest rate of price growth since September. With the result, inflation remained within or below the Bank of Canada’s midpoint target 2% for the fifth consecutive month, adding to current expectations of further rate cuts this year. Inflation slowed sharply for food (0.6% vs 2.8% in November), lowered by an annual decline in food purchased from restaurants (-1.6%) due to goods and services tax and harmonized sales tax breaks. Inflation also slowed for shelter (4.5% vs 4.6%) amid softer price growth for rent (7.2% vs 7.7%) and mortgage interest costs (11.7%, the lowest since October 2022). On the other hand, transportation costs accelerated (2.3% vs 1.1%) as base effects drove gasoline inflation to soar (3.5% vs -0.5%). From the previous month, Canadian consumer prices fell by 0.4%. source: Statistics Canada

Inflation Rate in Canada decreased to 1.80 percent in December from 1.90 percent in November of 2024. Inflation Rate in Canada averaged 3.14 percent from 1915 until 2024, reaching an all time high of 21.60 percent in June of 1920 and a record low of -17.80 percent in June of 1921. This page provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on January of 2025.

Inflation Rate in Canada decreased to 1.80 percent in December from 1.90 percent in November of 2024. Inflation Rate in Canada is expected to be 2.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Canada Inflation Rate is projected to trend around 2.50 percent in 2026, according to our econometric models.




Calendar GMT Reference Actual Previous Consensus TEForecast
2024-12-17 01:30 PM
Inflation Rate YoY
Nov 1.9% 2% 2% 2.1%
2025-01-21 01:30 PM
Inflation Rate YoY
Dec 1.8% 1.9% 1.9% 1.8%
2025-02-18 01:30 PM
Inflation Rate YoY
Jan

Components Last Previous Unit Reference
Food Inflation 0.60 2.80 percent Dec 2024
Rent Inflation 7.10 7.70 percent Dec 2024
Services Inflation 3.50 3.50 percent Dec 2024

Related Last Previous Unit Reference
Consumer Price Index CPI 161.20 161.80 points Dec 2024
Core Consumer Prices 155.80 156.30 points Dec 2024
Core Inflation Rate YoY 1.80 1.60 percent Dec 2024
CPI Housing Utilities 185.80 185.30 points Dec 2024
CPI Transportation 173.40 170.40 points Dec 2024
Export Prices 136.80 135.00 points Nov 2024
GDP Implicit Price 127.20 126.30 points Sep 2024
Import Prices 133.30 131.60 points Nov 2024
Inflation Rate YoY 1.80 1.90 percent Dec 2024
Inflation Rate MoM -0.40 0.00 percent Dec 2024
Producer Prices 128.30 128.00 points Dec 2024
PPI YoY 4.10 2.20 percent Dec 2024
Raw Materials Prices MoM 142.00 140.20 points Dec 2024

Canada Inflation Rate
In Canada, the most important categories in the CPI basket are Shelter (30 percent of the total weight) and Transportation (17 percent). Food accounts for 16 percent; Household Operations, Furnishings and Equipment for 15 percent; Recreation, Education and Reading for 9 percent; Health and Personal Care for 5 percent; Alcoholic Beverages and Tobacco Products for 5 percent and Clothing and Footwear for the remaining 4 percent. The CPI basket is reviewed every four years on the basis of household surveys. The current weights are based on spending patterns in 2002.
Actual Previous Highest Lowest Dates Unit Frequency
1.80 1.90 21.60 -17.80 1915 - 2024 percent Monthly
2002=100


News Stream
Canada Inflation Unexpectedly Falls
The annual inflation rate in Canada eased to 1.8% in December of 2024 from 1.9% in the previous month, slightly below market expectations that it would remain at 1.9%, to mark the softest rate of price growth since September. With the result, inflation remained within or below the Bank of Canada’s midpoint target 2% for the fifth consecutive month, adding to current expectations of further rate cuts this year. Inflation slowed sharply for food (0.6% vs 2.8% in November), lowered by an annual decline in food purchased from restaurants (-1.6%) due to goods and services tax and harmonized sales tax breaks. Inflation also slowed for shelter (4.5% vs 4.6%) amid softer price growth for rent (7.2% vs 7.7%) and mortgage interest costs (11.7%, the lowest since October 2022). On the other hand, transportation costs accelerated (2.3% vs 1.1%) as base effects drove gasoline inflation to soar (3.5% vs -0.5%). From the previous month, Canadian consumer prices fell by 0.4%.
2025-01-21
Canada Inflation Rate Unexpectedly Softens
The annual inflation rate in Canada was at 1.9% in November of 2024, easing from the 2% in the previous month and undershooting market expectations of 2%. The result was in line with the Bank of Canada’s baseline scenario that CPI inflation is due to remain close to the 2% threshold for the foreseeable future. Still, the trimmed-mean core rate was unchanged at 2.7% instead of expectations that it would ease to 2.5%, limiting the magnitude of rate cuts that the monetary authority may deliver to aid economic growth. Gasoline prices fell to a lesser extent (-0.5% vs -4% in October) as base effects faded, driving transportation costs to accelerate (1.1% vs 0.2%). In turn, inflation decelerated for shelter (4.6% vs 4.8%) as softer price growth for mortgages offset higher inflation for rent. Inflation also eased for food (2.8% vs 3%) amid slowing inflation in grocery stores. From the previous month, the Canadian CPI was unchanged.
2024-12-17
Canada Inflation Rebounds More Than Expected
The annual inflation rate in Canada rose to 2% in October of 2024 from an over-three-year low of 1.6% in the previous month, overshooting market expectations of 1.9%. Despite the sharper-than-expected increase, the headline inflation rate remained within the Bank of Canada’s target for the third consecutive month. The increase was largely driven by waning base effects for gasoline prices. Gasoline prices fell by 4% annually from the 10.7% drop in September, driving transportation costs to swing to inflation (0.2% vs -1.5% in September). In turn, inflation slowed for shelter (4.8% vs 5%) and food (3% vs 2.8%).
2024-11-19