Canada's inflation rate experienced significant fluctuations from 2018 to 2025. Inflation peaked at *** percent in June 2022 before steadily declining to *** percent by December 2024. In early 2025, inflation began to increase again, rising to *** percent in February and dropping to *** percent in March. In April 2025, inflation decreased to *** percent. In response to rising inflation between 2020 and 2022, the Bank of Canada implemented aggressive interest rate hikes. The bank rate reached a maximum of **** percent in July 2023 and remained stable until June 2024. As inflationary pressures eased in the second half of 2024, the central bank reduced interest rates to *** percent in December 2024. In 2025, the bank rate witnessed further cuts, standing at * percent in March 2025 and **** percent in September 2025. This pattern reflected broader global economic trends, with most advanced and emerging economies experiencing similar inflationary challenges and monetary policy adjustments. Global context of inflation and interest rates The Canadian experience aligns with the broader international trend of central banks raising policy rates to combat inflation. Between 2021 and 2023, nearly all advanced and emerging economies increased their central bank rates. However, a shift occurred in the latter half of 2024, with many countries, including Canada, beginning to lower rates. This change suggests a new phase in the global economic cycle and monetary policy approach. Notably, among surveyed countries, Russia maintained the highest interest rate in early 2025, while Japan had the lowest rate. Comparison with the United States The United States experienced a similar trajectory in inflation and interest rates. U.S. inflation peaked at *** percent in June 2022, slightly higher than Canada's peak. The Federal Reserve responded with a series of rate hikes, reaching **** percent in August 2023. This rate remained unchanged until September 2024, when the first cut since September 2021 was implemented. In contrast, Canada's bank rate peaked at **** percent and began decreasing earlier, with cuts in June and July 2024. These differences highlight the nuanced approaches of central banks in managing their respective economies amid global inflationary pressures.

Inflation Rate in Canada decreased to 2.20 percent in October from 2.40 percent in September of 2025. This dataset provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

This table contains 13 series, with data from 1949 (not all combinations necessarily have data for all years). Data are presented for the current month and previous four months. Users can select other time periods that are of interest to them.

Bank of Canada: Inflation Target data was reported at 2.000 % in 2026. This stayed constant from the previous number of 2.000 % for 2025. Bank of Canada: Inflation Target data is updated yearly, averaging 2.000 % from Dec 1992 (Median) to 2026, with 35 observations. The data reached an all-time high of 3.000 % in 1993 and a record low of 2.000 % in 2026. Bank of Canada: Inflation Target data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.I: Inflation Target.

The statistic shows the average inflation rate in Canada from 1987 to 2024, with projections up until 2030. The inflation rate is calculated using the price increase of a defined product basket. This product basket contains products and services, on which the average consumer spends money throughout the year. They include expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (e.g. gas, oil), as well as federal fees and taxes. In 2022, the average inflation rate in Canada was approximately 6.8 percent compared to the previous year. For comparison, inflation in India amounted to 5.56 percent that same year. Inflation in Canada In general, the inflation rate in Canada follows a global trend of decreasing inflation rates since 2011, with the lowest slump expected to occur during 2015, but forecasts show an increase over the following few years. Additionally, Canada's inflation rate is in quite good shape compared to the rest of the world. While oil and gas prices have dropped in Canada much like they have around the world, food and housing prices in Canada have been increasing. This has helped to offset some of the impact of dropping oil and gas prices and the effect this has had on Canada´s inflation rate. The annual consumer price index of food and non-alcoholic beverages in Canada has been steadily increasing over the last decade. The same is true for housing and other price indexes for the country. In general there is some confidence that the inflation rate will not stay this low for long, it is expected to return to a comfortable 2 percent by 2017 if estimates are correct.

The benchmark interest rate in Canada was last recorded at 2.25 percent. This dataset provides - Canada Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Core consumer prices in Canada increased 2.90 percent in October of 2025 over the same month in the previous year. This dataset provides - Canada Core Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Bank of Canada: Inflation Target: Upper Limit data was reported at 3.000 % in 2026. This stayed constant from the previous number of 3.000 % for 2025. Bank of Canada: Inflation Target: Upper Limit data is updated yearly, averaging 3.000 % from Dec 1992 (Median) to 2026, with 35 observations. The data reached an all-time high of 4.000 % in 1993 and a record low of 3.000 % in 2026. Bank of Canada: Inflation Target: Upper Limit data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.I001: Inflation Target.

Bank of Canada: Inflation Target: Lower Limit data was reported at 1.000 % in 2026. This stayed constant from the previous number of 1.000 % for 2025. Bank of Canada: Inflation Target: Lower Limit data is updated yearly, averaging 1.000 % from Dec 1992 (Median) to 2026, with 35 observations. The data reached an all-time high of 2.000 % in 1993 and a record low of 1.000 % in 2026. Bank of Canada: Inflation Target: Lower Limit data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.I: Inflation Target.

Historical (real-time) releases of the measures of core inflation, with data from 1989 (not all combinations necessarily have data for all years). Data are presented for the current release and previous four releases. Users can select other releases that are of interest to them.

Canada BOS: Inflation Expectations: 3% data was reported at 44.000 % in Mar 2025. This records a decrease from the previous number of 51.000 % for Dec 2024. Canada BOS: Inflation Expectations: 3% data is updated quarterly, averaging 42.000 % from Jun 2001 (Median) to Mar 2025, with 96 observations. The data reached an all-time high of 69.000 % in Jun 2007 and a record low of 11.000 % in Jun 2022. Canada BOS: Inflation Expectations: 3% data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.S003: Business Outlook Survey. Business Outlook Survey Questionnaire: Inflation Expectations - Over the next two years, what do you expect the annual rate of inflation to be, based on the consumer price index? [COVID-19-IMPACT]

Historical data of Canadian bank rates, prime rates, and inflation rates from 1935 to 2025

Graph and download economic data for Inflation, consumer prices for Canada (FPCPITOTLZGCAN) from 1960 to 2024 about Canada, consumer, CPI, inflation, price index, indexes, and price.

Canada Consumer Expectations: Inflation: 5-Yr Ahead data was reported at 3.390 % in Mar 2025. This records an increase from the previous number of 2.990 % for Dec 2024. Canada Consumer Expectations: Inflation: 5-Yr Ahead data is updated quarterly, averaging 3.560 % from Jun 2015 (Median) to Mar 2025, with 40 observations. The data reached an all-time high of 4.260 % in Jun 2018 and a record low of 2.620 % in Dec 2023. Canada Consumer Expectations: Inflation: 5-Yr Ahead data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.H025: Consumer Expectations Survey. Consumer Expectations Survey Questionnaire: Inflation expectations for each horizon: What do you expect the rate of inflation (deflation) to be?

In September 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In September 2025, Russia maintained the highest interest rate at 17 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at -0.3 percent in September 2025. In contrast, Russia maintained a high inflation rate of 8 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

Canada Consumer Expectations: Wage Growth: Inflation Expectations: 1-Yr Ahead data was reported at 4.090 % in Mar 2025. This records an increase from the previous number of 3.050 % for Dec 2024. Canada Consumer Expectations: Wage Growth: Inflation Expectations: 1-Yr Ahead data is updated quarterly, averaging 2.730 % from Dec 2014 (Median) to Mar 2025, with 42 observations. The data reached an all-time high of 7.180 % in Dec 2022 and a record low of 2.080 % in Sep 2017. Canada Consumer Expectations: Wage Growth: Inflation Expectations: 1-Yr Ahead data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.H025: Consumer Expectations Survey. Consumer Expectations Survey Questionnaire: Wage growth expectations: By about what percent do you expect your earnings* to have increased (decreased) over the next 12 months? *Earnings refers to earnings in the same job, for the same hours worked, before taxes and deductions.

Canada: Real interest rate: Bank lending rate minus inflation: The latest value from 2017 is 0.13 percent, a decline from 1.97 percent in 2016. In comparison, the world average is 5.12 percent, based on data from 122 countries. Historically, the average for Canada from 1961 to 2017 is 3.26 percent. The minimum value, -4.17 percent, was reached in 1974 while the maximum of 10.36 percent was recorded in 1990.

The Gross Domestic Product (GDP) in Canada expanded 0.60 percent in the third quarter of 2025 over the previous quarter. This dataset provides - Canada GDP Growth Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Canada CA: Inflation:(GDP) Gross Domestic ProductDeflator data was reported at 1.535 % in 2023. This records a decrease from the previous number of 7.654 % for 2022. Canada CA: Inflation:(GDP) Gross Domestic ProductDeflator data is updated yearly, averaging 3.250 % from Dec 1961 (Median) to 2023, with 63 observations. The data reached an all-time high of 15.569 % in 1974 and a record low of -2.325 % in 2009. Canada CA: Inflation:(GDP) Gross Domestic ProductDeflator data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Canada – Table CA.World Bank.WDI: Inflation. Inflation as measured by the annual growth rate of the GDP implicit deflator shows the rate of price change in the economy as a whole. The GDP implicit deflator is the ratio of GDP in current local currency to GDP in constant local currency.;World Bank national accounts data, and OECD National Accounts data files.;Median;

Canada CA: NAIRU: Equilibrium Unemployment Rate data was reported at 6.243 % in 2022. This records a decrease from the previous number of 6.251 % for 2021. Canada CA: NAIRU: Equilibrium Unemployment Rate data is updated yearly, averaging 7.065 % from Dec 1985 (Median) to 2022, with 38 observations. The data reached an all-time high of 8.006 % in 1993 and a record low of 6.243 % in 2022. Canada CA: NAIRU: Equilibrium Unemployment Rate data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Canada – Table CA.OECD.EO: Non-Accelerating Inflation Rate of Unemployment (NAIRU): Forecast: OECD Member: Annual. NAIRU - Equilibrium unemployment rate The equilibrium unemployment rate (code NAIRU) is estimated using a Kalman filter in a Phillips curve framework which assumes inflation expectations are anchored at the central bank’s inflation target . The NAIRU is then projected forward from the last estimated period using a simple autoregressive rule, exceptionally modified to account for recent labour market reforms, until the end of the forecasting horizon More details on methodology in Rusticelli E., Turner D. and M. C. Cavalleri (2015), Incorporating anchored inflation expectations in the Phillips Curve and in the derivation of OECD measures of equilibrium unemployment, OECD Economics Department Working Papers No.1231 OECD, Economics Department Working Papers: Incorporating anchored inflation expectations in the Phillips Curve and in the derivation of OECD measures of equilibrium unemployment:https://www.oecd-ilibrary.org/economics/incorporating-anchored-inflation-expectations-in-the-phillips-curve-and-in-the-derivation-of-oecd-measures-of-equilibrium-unemployment_5js1gmq551wd-en