Canada Inflation Rate

Last Release

Dec 31, 2024

Actual

1.8

Units In

1.9

Frequency

Monthly

Next Release

Feb 18, 2025

Time to Release

27 Days 5 Hours

Highest	Lowest	Average	Date Range	Source
21.6 Jun 1920	-17.8 Jun 1921	3.14 %	1915-2024	Statistics Canada

In Canada, the most important categories in the CPI basket are Shelter (27.5 percent of the total weight) and Transportation (19.3 percent). Food accounts for 16.1 percent; Household Operations, Furnishings and Equipment for 11.8 percent; Recreation, Education and Reading for 11.8 percent; Clothing and Footwear for 5.7 percent; Health and Personal Care for 5 percent; Alcoholic Beverages and Tobacco Products for the remaining 3 percent. The CPI basket is reviewed every four years on the basis of household surveys. The current weights are based on spending patterns in 2009.

Latest Updates

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%.