The Toronto skyline in Canada

Canada Inflation

Canada Inflation

Inflation in Canada

Canada maintained a relatively stable inflation rate from 2013 to 2019, averaging close to 2%. The country's inflation management strategies, including a strong monetary policy framework, contributed to this stability. However, the COVID-19 pandemic led to a temporary rise in inflation, driven by supply chain disruptions and government stimulus measures. By the end of 2022, the inflation rate had started to recede, indicating the effectiveness of the Bank of Canada's measures in controlling price increases.

Consumer price inflation in Canada averaged 2.2% in the ten years to 2022. This is above the major economies' regional average of 2.1%. In contrast, the 2022 average figure was 6.8%. For more inflation information, visit our dedicated page.

Canada Inflation Chart

Note: This chart displays Inflation Rate (CPI, annual variation in %) for Canada from 2014 to 2023.
Source: Statistics Canada.

Canada Inflation Data

2018 2019 2020 2021 2022
Inflation (CPI, ann. var. %, aop) 2.3 1.9 0.7 3.4 6.8
Inflation (CPI, ann. var. %, eop) 2.0 2.2 0.7 4.8 6.3
Inflation (Core, ann. var. %, aop) 1.5 1.8 1.2 2.8 5.6
Inflation (PPI, ann. var. %, aop) 3.9 -0.1 -0.4 13.9 12.8

Inflation declines to lowest level since June 2023 in January

Inflation dropped to 2.9% in January, following December’s 3.4% and well below market expectations. January's reading marked the lowest inflation rate since June 2023 and meant that inflation moved back within the Central Bank’s 1.0%–3.0% target range for the first time since June 2023. The result was largely driven by lower price pressures for food, transport and clothing more than offsetting brisker housing price inflation. Annual average inflation fell to 3.6% in January (December: 3.9%). Meanwhile, core inflation edged down to 2.4% in January, from the previous month's 2.6%. Finally, consumer prices were flat in January over the previous month, following December's 0.31% drop.

On the monetary policy implications, Goldman Sachs analysts said: “Inflation surprised to the downside in January and the details of the report were also weak, so we view [the] print as a signal that inflationary pressures are cooling, consistent with our expectation that inflation will fall back to +2.1% by end-2024. Today’s data increase our confidence that the BoC cuts for the first time at an upcoming meeting, but we believe that the BoC will want to see more evidence of sustained easing in underlying inflation prior to any pivot (especially given slower progress in forward-looking inflation indicators like inflation expectations and wage growth).”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Canadian inflation projections for the next ten years from a panel of 34 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Canadian inflation.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Canadian inflation projections.

Want to get access to the full dataset of Canadian inflation forecasts? Send an email to

Latest Global Inflation News

Free sample report

Interested in economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest