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 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 two cuts, standing at ***** percent in May 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.

Tax interest is compounded daily and interest rates are reset every 3 months.

Note: Provincial land tax interest rates are not reset every three months. Provincial land tax interest rates are summarized on the "https://www.fin.gov.on.ca/en/consultations/landtaxreform/payment-forms.html">provincial land tax webpage. Interest rates do not apply to the Estate Administration Tax Act, 1998.

Current interest rates (April 1, 2025 to June 30, 2025):

• 8% on taxes you owe to the ministry
• 2% on taxes you overpaid
• 5% on taxes or refunds you are eligible for as a result of a successful appeal or objection
• 6% on late International Fuel Tax Agreement payments
• 6% on International Fuel Tax Agreement refunds the ministry has not paid you within 90 days

You can download the dataset to view the historical tax interest rates.

Non-Resident Speculation Tax (NRST)

(1) Interest on tax you overpaid begins to accrue 40 business days after a complete NRST rebate or refund application is received by the Ministry of Finance to the date the rebate or refund is paid.

(2) On refunds you are eligible for as a result of a successful appeal or objection of a NRST refund/rebate disallowance, the interest rate is the same rate as though you had overpaid and will begin to accrue 40 business days after a complete NRST rebate or refund application is received by the Ministry of Finance to the date the rebate or refund is paid. Refunds as a result of a successful appeal or objection of NRST that was paid pursuant to a Notice of Assessment, interest will accrue at the higher appeals/objection rate, beginning to accrue from the date of payment to the date the rebate or refund is paid.

This table contains data described by the following dimensions (Not all combinations are available): Geography (1 items: Canada ...).

Rates have been trending downward in Canada for the last five years. The ebbs and flows are caused by changes in Canada’s bond yields (driven by Canadians economic developments and international rate movements, particularly U.S. rate fluctuations) and the overnight rate (which is set by the Bank of Canada). As of August 2022, there has been a 225 bps increase in the prime rate, since beginning of year 2022, from 2.45% to 4.70% as of Aug 24th 2022. The following are the historical conventional mortgage rates offered by the 6 major chartered banks in Canada in the past 20 years.

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.

Inflation Rate in Canada remained unchanged at 1.70 percent in May. This dataset provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Loan administration and cheque cashing services endured mixed results amid economic volatility during the pandemic and the continued effects of high interest rates on Canadian businesses and consumers alike. Canadian consumers' appetite for debt has boosted the industry by sustaining demand for consumer financing, mortgages and cash services for businesses. However, sharp economic volatility in 2020 forced consumers and businesses to shift their borrowing preferences away from traditional banking clients, causing revenue to spike in 2020. While a temporary economic recovery in 2021 caused consumers to revert back to traditional financial norms, the effects of high inflation and interest rates severely influenced how clients pursue their financial goals. Broader growth in core loan vehicles, such as auto loans and mortgages, in 2024 further cemented administrator demand. Nonetheless, continued competition from digital alternatives and external competitors curtailed larger rates of growth, with revenue rising an annualized 3.2% to an estimated $1.8 billion through the end of 2024, including an estimated 2.1% boost in 2024 alone. Profit followed a similar trend, as higher rates of loan demand and lowering of operational expenses facilitated greater profitability for administrators. Canadian GDP growth has largely been driven by trends in consumption. As interest rates spiked in 2023, Canadians have had to alter their spending habits and patterns. The continued upward push of Canadians living paycheck to paycheck further discouraged demand for traditional banks and provided a more diversified revenue stream among younger and underbanked consumers. This reliance on debt to make monthly payments also provides administrators with steady demand for their payday loan offerings. But in an environment where most payday loans made are to consumers with a higher probability of default, mounting household debt runs the risk of insolvency and industry contraction. Additionally, mounting external competition from digital payment platforms undermined administrator demand, with consumers having more opportunities via digital platforms to meet their digital needs. Moving forward, loan administration and cheque cashing services will continue to benefit from uncertainty surrounding interest rates and general economic shakiness among downstream customers. However, anticipated changes in regulations surrounding payday loans and interest rates will enhance compliance costs and curtail profitability. Lastly, increased external competition from commercial banks, credit unions and emerging financial technology companies via payment platforms like Zelle and Venmo will likely put downward pressure on niche services such as cheque cashing, money order issuance, travellers' cheque issuance and payday loans. Revenue is expected to fall an annualized 2.4% to an estimated $1.6 billion through the end of 2029.

In light of the Bank of Canada’s six interest rate hikes this year, homeowners with a mortgage loan should brace themselves for higher rates at renewal over the next five years. And according to a recent Leger survey conducted on behalf of RATESDOTCA and BNN Bloomberg, 53% of homeowners are already feeling concerned about an increase in payments when their mortgages come up for renewal. While 52% of homeowners have a plan in place to meet those increased payments, half don’t consider shopping the market as part of that plan. In fact, 51% say they don’t plan to change lenders upon renewal, and 9% said they weren’t even aware that switching lenders was possible.https://static.rates.ca/images/BNN_x_RATESDOTCA_Concern_over_mortgage_renewal.width-800.png" width="800">

Executive summary As Canada’s federal deposit insurer and resolution authority, CDIC operates in a rapidly changing and complex environment. Canada’s economy is facing global and domestic headwinds, such as tighter monetary policy, higher interest rates, geo-political tensions, and lower housing affordability. Canadian businesses continue to navigate an uncertain operating environment with elevated input and borrowing costs. People in Canada are feeling the impacts every day. Overall, CDIC members are in stable financial condition. Although the 2023 bank failures in the United States and Switzerland were contained to those countries, these events underscored the importance of continued vigilance in regulatory oversight and supervision. They also reaffirmed the value of resolution planning and testing so CDIC can respond quickly to a variety of crisis scenarios and possible shocks to financial system stability. Moreover, they highlighted the importance of promoting public awareness of deposit insurance, which protects depositors and contributes to financial stability. Every year, new financial products, services, providers, and transaction channels are launched. This presents new savings opportunities, but also new risks to depositors regarding deposit protection and coverage. In response, CDIC continues to innovate to protect financial futures in Canada. For example, CDIC is continuing its payout modernization project which aims to reimburse depositors more conveniently, quickly, and securely in the event of a member failure. CDIC is also adapting to an evolving workplace environment. All organizations are facing increasing technological and cultural hanges, with continued competition for talent. CDIC will continue to advance its workforce strategies to prioritize attracting and retaining top talent, with a focus on ensuring its employees are representative of Canada’s diverse population. The Corporation will continue refining its approach to hybrid work, adapting technology, operations, and skills training across the organization to continue meeting the demands of the future in service of its mandate. CDIC will focus on three strategic objectives for the 2024/2025 to 2028/2029 planning period, anchored to the Corporation’s mandate as federal deposit insurer and resolution authority: 1 — Resolution Readiness Resolution readiness involves having the necessary people, data, processes, tools, systems, and financial capacity to resolve a member failure, if necessary. CDIC’s role among Canada’s financial sector oversight agencies intensifies during times of economic hardship or uncertainty. CDIC protects depositors and contributes to financial stability by being resolution ready. CDIC will continue to strengthen its capacity for the early identification and surveillance of risks. It will also identify and assess resolution tools, policies, and mechanisms to strengthen the current deposit insurance and resolution framework and improve resolution capacity and capabilities through training and testing. In 2024/2025, CDIC will remain focused on its new deposit insurance and payout system, a major transformational initiative that began in 2021. The project aims to enable depositors to access their funds more rapidly and securely in the event of a member failure. It will also enable CDIC to support new digital channels for communicating securely with depositors, member institutions, and deposit brokers. In 2024/2025, CDIC will also continue working on the tri-agency Data Collection Modernization Initiative, alongside the Office of the Superintendent of Financial Institutions (OSFI) and the Bank of Canada. This will ensure CDIC has the necessary level of regulatory data to: support risk-intelligent decision-making abilities, proactively respond to changes in Canada’s risk environment, and align needs to support the respective mandates of participating agencies. 2 — Depositor Trust and Confidence Reinforcing people’s confidence in the safety of their deposits is essential to protecting financial futures in Canada. CDIC is undertaking a Deposit Insurance Study to assess the scope and coverage of current deposit protection to ensure that it continues to meet depositors’ needs into the future. Results will be shared with the Minister of Finance for policy consideration. Given the strong linkage between public awareness of deposit protection and the stability of the financial system, the Corporation will continue to focus on the level of people’s awareness of CDIC, its membership and coverage. 3 — Organizational Strength Organizational strength involves preparing for, and responding to, internal and external factors that can impact CDIC’s people, culture, and technologies. CDIC is committed to having a workforce that reflects the depositors it serves and being an employer of choice. CDIC is focused on promoting an inclusive culture, and exceeding workforce representation statistics. CDIC will again seek to achieve the Great Place to Work™ certification in 2024/2025. CDIC achieves its vision through its people and strong culture. CDIC will enhance the efficiency and effectiveness of its enterprise and corporate services through targeted technology investment, improved operational resiliency and augmented skills-training to ensure the Corporation can continue to fulfill its mandate. From a financial perspective, CDIC’s operating budget will be $90.3 million in fiscal year 2024/2025, and its capital budget will be $1.2 million. CDIC maintains (ex ante) funding to cover possible deposit insurance losses. The amount of such funding is represented by the aggregate of CDIC’s retained earnings and the provision for insurance losses. CDIC’s ex ante fund was $8.6 billion (73 basis points of insured deposits) as at September 30, 2023. The Corporate Plan anticipates and responds to the evolving operating environment and risks facing CDIC. It also supports the Corporation’s ability to achieve its mandate, while maintaining the public’s trust and confidence that their eligible deposits are protected.

Evaluate Canada’s best mortgage rates in one place. RATESDOTCA’s Rate Matrix lets you compare pricing for all key mortgage types and terms. Rates are based on an average mortgage of $300,000

Scientific and economic consultants in Canada enjoyed strong growth in large part due to robust demand from niche clients and a rapid economic recovery following a period of high volatility. Significant growth in demand from the agriculture, energy and mining sectors, which are one of the largest customer segments in the industry, helped stabilize revenue growth despite sharp volatility from other sectors of the economy amid the pandemic and the impact of rising interest rates to combat inflation. Since consultants service a diverse array of clients, a decrease in one may lead to an opportunity in another. These trends caused revenue to grow at a CAGR of 7.5% to an estimated $7.3 billion through the end of 2024, including an estimated 0.2% boost in 2024, primarily influenced by rising government investment. The mining sector in Canada has experienced volatile performance over the past five years due to fluctuating commodity prices, which influence production levels, revenue and profit. As mining companies' revenue and profit decreased, many cut back on expenditures and reduced the number of expansion projects, which caused a decline in demand for niche operators' services. A rapid economic recovery following the pandemic reversed this trend, although sharp growth in inflation influenced mining companies' profit margin and dampened broader corporate profit across Canada. Nonetheless, due to consultants’ diverse service offering, declines in demand for one segment are often mitigated by increases in demand from other industries. For instance, demand from the agriculture sector offset some of the declines in demand from energy and mining companies during the pandemic, which helped maintain high profit levels. Over the next five years, revenue is forecast to continue rising as the economy continues to stabilize following high inflation and interest rates are lowered. A continued stream of demand from many other customer segments and government expenditures are expected to rise as the economy expands over the next five years. Overall, revenue is expected to grow at a CAGR of 2.6% to an estimated $8.3 billion over the next five years.

Real estate appraisal in Canada has thrived because of a strong housing market and economic growth. Low interest rates amid the pandemic bolstered the residential market and paved the way for a multitude of new housing projects. It also caused many potential home buyers to make the jump since mortgage rates were at historical lows. Even so, this growth did not last long as inflationary concerns constrained the need for appraisals following the pandemic, causing a 4.6% decline in 2023. Overall, real estate appraisal is expected to grow at a CAGR of 2.3% to $928.4 million over the five years to 2023, where profit will reach 22.8%.While the residential sector slumped significantly post-pandemic, a revitalized commercial construction sector prevented revenue from completely sinking. Commercial appraisals fell drastically amid the pandemic as health and safety regulations forced businesses to close temporarily, halting business activity. Consumer sentiment grew as the economy eventually opened and corporate profit rebounded amid falling uncertainty. Businesses resumed merger and acquisition activity and property expansion, which requires appraisal services to complete the transaction.Through 2028, the commercial real estate market is set to grow as businesses expand their operations. The residential housing market is expected to bounce back as interest rates are set to come down following more minor inflation bumps. Appraisal companies will continue to leverage new technologies to expand the scope of their services, become more competitive and offer more precise valuations for all types of clients. Real estate appraisal revenue is expected to increase at a CAGR of 1.9% to $1.0 billion.

The average yearly yield of Canadian 10-year government bonds has shown a significant downward trend from 1990 to 2020. Starting at over ten percent in 1990, yields steadily declined, with slight fluctuations, reaching a low of 0.75 percent in 2020. After 2020, yields began to rise again, reflecting recent increases in interest rates and inflation expectations, reaching an average of 3.34 percent in 2024.

Following the drastic increase directly after the COVID-19 pandemic, the delinquency rate started to gradually decline, falling below *** percent in the second quarter of 2023. In the second half of 2023, the delinquency rate picked up, but remained stable throughout 2024. In the first quarter of 2025, **** percent of mortgage loans were delinquent. That was significantly lower than the **** percent during the onset of the COVID-19 pandemic in 2020 or the peak of *** percent during the subprime mortgage crisis of 2007-2010. What does the mortgage delinquency rate tell us? The mortgage delinquency rate is the share of the total number of mortgaged home loans in the U.S. where payment is overdue by 30 days or more. Many borrowers eventually manage to service their loan, though, as indicated by the markedly lower foreclosure rates. Total home mortgage debt in the U.S. stood at almost ** trillion U.S. dollars in 2024. Not all mortgage loans are made equal ‘Subprime’ loans, being targeted at high-risk borrowers and generally coupled with higher interest rates to compensate for the risk. These loans have far higher delinquency rates than conventional loans. Defaulting on such loans was one of the triggers for the 2007-2010 financial crisis, with subprime delinquency rates reaching almost ** percent around this time. These higher delinquency rates translate into higher foreclosure rates, which peaked at just under ** percent of all subprime mortgages in 2011.

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.

Inflation is generally defined as the continued increase in the average prices of goods and services in a given region. Following the extremely high global inflation experienced in the 1980s and 1990s, global inflation has been relatively stable since the turn of the millennium, usually hovering between three and five percent per year. There was a sharp increase in 2008 due to the global financial crisis now known as the Great Recession, but inflation was fairly stable throughout the 2010s, before the current inflation crisis began in 2021. Recent years Despite the economic impact of the coronavirus pandemic, the global inflation rate fell to 3.26 percent in the pandemic's first year, before rising to 4.66 percent in 2021. This increase came as the impact of supply chain delays began to take more of an effect on consumer prices, before the Russia-Ukraine war exacerbated this further. A series of compounding issues such as rising energy and food prices, fiscal instability in the wake of the pandemic, and consumer insecurity have created a new global recession, and global inflation in 2024 is estimated to have reached 5.76 percent. This is the highest annual increase in inflation since 1996. Venezuela Venezuela is the country with the highest individual inflation rate in the world, forecast at around 200 percent in 2022. While this is figure is over 100 times larger than the global average in most years, it actually marks a decrease in Venezuela's inflation rate, which had peaked at over 65,000 percent in 2018. Between 2016 and 2021, Venezuela experienced hyperinflation due to the government's excessive spending and printing of money in an attempt to curve its already-high inflation rate, and the wave of migrants that left the country resulted in one of the largest refugee crises in recent years. In addition to its economic problems, political instability and foreign sanctions pose further long-term problems for Venezuela. While hyperinflation may be coming to an end, it remains to be seen how much of an impact this will have on the economy, how living standards will change, and how many refugees may return in the coming years.

A graphic that displays the dollar performance against other currencies reveals that economic developments had mixed results on currency exchanges. The third quarter of 2023 marked a period of disinflation in the euro area, while China's projected growth was projected to go up. The United States economy was said to have a relatively strong performance in Q3 2023, although growing capital market interest rate and the resumption of student loan repayments might dampen this growth at the end of 2023. A relatively weak Japanese yen Q3 2023 saw pressure from investors towards Japanese authorities on how they would respond to the situation surrounding the Japanese yen. The USD/JPY rate was close to ***, whereas analysts suspected it should be around ** given the country's purchase power parity. The main reason for this disparity is said to be the differences in central bank interest rates between the United States, the euro area, and Japan. Any future aggressive changes from, especially the U.S. Fed might lower those differences. Financial markets responded somewhat disappoint when Japan did not announce major plans to tackle the situation. Potential rent decreases in 2024 Central bank rates peak in 2023, although it is expected that some of these will decline in early 2024. That said, analysts expect overall policies will remain restrictive. For example, the Bank of England's interest rate remained unchanged at **** percent in Q3 2023. It is believed the United Kingdom's central bank will ease its interest rate in 2024 but less than either the U.S. Fed or the European Central Bank. This should be a positive development for the pound compared to either the euro or the dollar.

At the end of 2023, Zimbabwe had the highest inflation rate in the world, at 667.36 percent change compared to the previous year. Inflation in industrialized and in emerging countries Higher inflation rates are more present in less developed economies, as they often lack a sufficient central banking system, which in turn results in the manipulation of currency to achieve short term economic goals. Thus, interest rates increase while the general economic situation remains constant. In more developed economies and in the prime emerging markets, the inflation rate does not fluctuate as sporadically. Additionally, the majority of countries that maintained the lowest inflation rate compared to previous years are primarily oil producers or small island independent states. These countries experienced deflation, which occurs when the inflation rate falls below zero; this may happen for a variety of factors, such as a shift in supply or demand of goods and services, or an outflow of capital.

Over the past five years, moving services in Canada have faced significant headwinds despite an initially favourable economic climate. The pandemic sparked a housing boom, with historically low interest rates and a surge in residential construction reaching new heights. Canadians purchased new homes and moved from urban centers like Toronto to suburban areas, but demand for moving services has remained sluggish amid cheaper external competition and low disposable income. The onset of inflation severely weighed on moving services, bringing on several years of sinking revenue. Revenue has been falling at a CAGR of 2.7% to an estimated $1.4 billion over the five years through 2024, including an expected 0.6% descent in 2024 alone. Interest rates are in a high spot mostly because of decisions by the Bank of Canada, complicating new home financing and encouraging homeowners to stick with their existing fixed-rate mortgages. High borrowing costs have significantly slowed moving activity since the rate hikes began in 2022, exacerbating existing issues and dragging down revenue for moving services. Moving services catering to commercial clients have also suffered as companies and organizations found it more challenging to finance new office spaces. The rise of remote work reduced the need for physical office moves, hurting demand. Price competition has intensified as demand remains subdued and new moving services join the industry. Moving services have struggled to pass on labour costs and volatile fuel prices, leading to eroding profit. High mortgage rates will keep moving activity suppressed through the next five years. Still, households are expected to increasingly outsource moving tasks as the economic recovery lifts disposable income and confidence. Stabilizing corporate profit will create a more favorable business environment, encouraging commercial relocations. Falling oil prices will lower operating costs for moving companies, helping bring back profit. Still, moving services will face ongoing competition from mobile app-based services and growing substitutes. Moving companies may need to adopt new technologies and enhance marketing strategies to stay competitive. Revenue will return to growth, climbing at a CAGR of 1.5% to an estimated $1.5 billion through the end of 2029.