Canada’s inflation rate was 3.1% in September 2026, after 3.0% in August, Statistics Canada reported on October 19, 2026. That is how much higher the consumer price index (CPI) was than a year earlier. The next figure comes out on November 16, 2026. What the CPI measures and how it is built are on the consumer price index page.
What did the latest inflation report show?
| September 2026 | Value |
|---|---|
| Consumer price index (2002=100) | 170.0 |
| Change over 12 months | 3.1% |
| Change over 12 months, August 2026 | 3.0% |
| Change from the month before | 0.1% |
| Change from the month before, seasonally adjusted | 0.4% |
| Energy, change over 12 months | 19.0% |
| All items excluding gasoline | 2.2% |
| All items excluding food and energy | 2.1% |
| CPI-trim | 1.8% |
| CPI-median | 1.9% |
| CPI-common | 2.4% |
Gasoline led the rise: excluding gasoline, prices were up 2.2%. Smaller increases for travel tours and groceries held the rate back. CPI-trim, CPI-median and CPI-common are the Bank of Canada’s preferred measures of core inflation, which look through short-lived swings in prices to show the underlying trend; the consumer price index page explains each one.
How does it compare with the Bank of Canada’s target?
The Bank of Canada aims to keep inflation at 2%, the middle of a target range of 1% to 3%, measured as the change in the total CPI over a year. The rate was above the top of that range in 2 of the past twelve months. The Bank and the federal government renew the target for 5-year periods, and the Bank says a review is under way and the target will be renewed in 2026. How the Bank uses its policy rate to steer inflation is on the Bank of Canada rate page.
What is pushing prices up?
| Category | Weight in CPI Basket | September 2026 Annual Change | Contribution to Headline Rate |
|---|---|---|---|
| Alcoholic beverages, tobacco products, recreational cannabis | 3.73% | 1.6% | 0.06% |
| Clothing and footwear | 4.5% | 1.7% | 0.08% |
| Food | 16.93% | 2.2% | 0.37% |
| Health and personal care | 5.4% | 1.7% | 0.09% |
| Household operations, furnishings and equipment | 12.8% | 0.4% | 0.05% |
| Recreation, education and reading | 9.81% | 4.6% | 0.45% |
| Shelter | 28.3% | 1.8% | 0.51% |
| Transportation | 18.54% | 8.4% | 1.56% |
Source: Statistics Canada CPI basket weights and the September 2026 monthly release. Energy (a special aggregate spanning transportation fuel and household energy, not a standalone basket category) rose 19% year-over-year.
The contribution column is our approximation: each part’s weight in the basket times its price change. Energy prices were up 19.0% and gasoline 27.8% over the year. Fuel oil rose 57.8%, which hit Atlantic Canada hardest because more homes there heat with it. Rent was up 2.8% and food bought in stores 1.7%; grocery prices are covered on the grocery bill page, and tariffs on the tariffs and prices page.
Inflation by province
| Province | 12-month change, September 2026 |
|---|---|
| Prince Edward Island | 5.7% |
| Nova Scotia | 5.6% |
| New Brunswick | 5.0% |
| Newfoundland and Labrador | 4.7% |
| Manitoba | 4.4% |
| Alberta | 3.6% |
| Saskatchewan | 3.3% |
| Quebec | 3.1% |
| British Columbia | 3.0% |
| Ontario | 2.5% |
| Canada | 3.1% |
Prices rose fastest in Prince Edward Island and slowest in Ontario. Statistics Canada noted that inflation picked up in five provinces in September 2026, mainly because of gasoline and fuel oil, and that rent rose fastest in Atlantic Canada. Rates for cities are on the consumer price index page.
Monthly inflation rate, last two years
| Month | 12-month change in the CPI |
|---|---|
| September 2026 | 3.1% |
| August 2026 | 3.0% |
| July 2026 | 3.0% |
| June 2026 | 2.8% |
| May 2026 | 3.2% |
| April 2026 | 2.8% |
| March 2026 | 2.4% |
| February 2026 | 1.8% |
| January 2026 | 2.3% |
| December 2025 | 2.4% |
| November 2025 | 2.2% |
| October 2025 | 2.2% |
| September 2025 | 2.4% |
| August 2025 | 1.9% |
| July 2025 | 1.7% |
| June 2025 | 1.9% |
| May 2025 | 1.7% |
| April 2025 | 1.7% |
| March 2025 | 2.3% |
| February 2025 | 2.6% |
| January 2025 | 1.9% |
| December 2024 | 1.8% |
| November 2024 | 1.9% |
| October 2024 | 2.0% |
Over these two years the rate peaked at 3.2% in May 2026 and was as low as 1.7%. Each figure compares a month’s index with the same month a year earlier.
Inflation rate by year
| Year | Inflation | Year | Inflation | Year | Inflation |
|---|---|---|---|---|---|
| 1990 | 4.8% | 2002 | 2.3% | 2014 | 1.9% |
| 1991 | 5.6% | 2003 | 2.8% | 2015 | 1.1% |
| 1992 | 1.5% | 2004 | 1.9% | 2016 | 1.4% |
| 1993 | 1.9% | 2005 | 2.2% | 2017 | 1.6% |
| 1994 | 0.2% | 2006 | 2.0% | 2018 | 2.3% |
| 1995 | 2.1% | 2007 | 2.1% | 2019 | 1.9% |
| 1996 | 1.6% | 2008 | 2.4% | 2020 | 0.7% |
| 1997 | 1.6% | 2009 | 0.3% | 2021 | 3.4% |
| 1998 | 1.0% | 2010 | 1.8% | 2022 | 6.8% |
| 1999 | 1.7% | 2011 | 2.9% | 2023 | 3.9% |
| 2000 | 2.7% | 2012 | 1.5% | 2024 | 2.4% |
| 2001 | 2.5% | 2013 | 0.9% | 2025 | 2.1% |
These are annual average rates: the average index for each year compared with the year before. In the table above, the highest was 6.8% in 2022 and the lowest 0.2% in 1994. Over the ten years to 2025, prices rose by an average of 2.6% a year. To see what a past amount is worth today, use the inflation calculator.
Annual inflation rate, earlier years
| Year | Inflation | Year | Inflation | Year | Inflation |
|---|---|---|---|---|---|
| 1915 | 2.1% | 1940 | 4.2% | 1965 | 2.3% |
| 1916 | 9.0% | 1941 | 6.0% | 1966 | 3.8% |
| 1917 | 18.0% | 1942 | 4.6% | 1967 | 3.6% |
| 1918 | 13.1% | 1943 | 2.2% | 1968 | 4.1% |
| 1919 | 9.5% | 1944 | 0.6% | 1969 | 4.6% |
| 1920 | 16.3% | 1945 | 0.6% | 1970 | 3.3% |
| 1921 | -12.1% | 1946 | 3.1% | 1971 | 2.7% |
| 1922 | -7.8% | 1947 | 9.0% | 1972 | 5.0% |
| 1923 | 0.0% | 1948 | 14.3% | 1973 | 7.5% |
| 1924 | -1.9% | 1949 | 3.5% | 1974 | 11.0% |
| 1925 | 1.2% | 1950 | 2.7% | 1975 | 10.7% |
| 1926 | 0.7% | 1951 | 10.5% | 1976 | 7.5% |
| 1927 | -1.4% | 1952 | 2.6% | 1977 | 8.0% |
| 1928 | 0.7% | 1953 | -1.0% | 1978 | 9.0% |
| 1929 | 1.0% | 1954 | 0.7% | 1979 | 9.1% |
| 1930 | -1.0% | 1955 | 0.2% | 1980 | 10.1% |
| 1931 | -9.9% | 1956 | 1.4% | 1981 | 12.5% |
| 1932 | -9.4% | 1957 | 3.3% | 1982 | 10.8% |
| 1933 | -4.4% | 1958 | 2.4% | 1983 | 5.9% |
| 1934 | 1.2% | 1959 | 1.2% | 1984 | 4.3% |
| 1935 | 0.5% | 1960 | 1.4% | 1985 | 4.0% |
| 1936 | 2.1% | 1961 | 1.0% | 1986 | 4.2% |
| 1937 | 3.6% | 1962 | 1.1% | 1987 | 4.4% |
| 1938 | 0.5% | 1963 | 1.6% | 1988 | 4.0% |
| 1939 | -0.8% | 1964 | 1.9% | 1989 | 5.0% |
The highest annual rate in these years was 18.0% in 1917.
When is the next inflation report?
| CPI for | Release date |
|---|---|
| October 2026 | November 16, 2026 |
| November 2026 | December 14, 2026 |
| December 2026 | January 18, 2027 |
| January 2027 | February 16, 2027 |
| February 2027 | March 15, 2027 |
What do forecasters expect?
In its Monetary Policy Report, October 2026, the Bank of Canada projected inflation to average 2.9% in 2026, 3.1% in 2027 and 2.2% in 2028. It said inflation is higher and more persistent than it expected in July, because energy prices are staying high for longer and businesses are passing on more of their rising costs. Its next forecast comes with its next Monetary Policy Report on January 27, 2027.
Why do prices feel higher than the inflation rate?
The inflation rate measures how fast prices are changing, not how high they are. When it falls, prices usually keep rising, just more slowly, and each year’s rise builds on the last. Over two years to September 2026 prices rose 5.5%, and over three years 7.3%. Grocery prices are a clear case: their yearly increase slowed, yet they were 33.0% higher than in September 2020. Wages don’t always keep up with prices, and when they fall behind, households feel it. The CPI also tracks an average household’s basket, so your own rate depends on what you buy; Statistics Canada’s personal inflation calculator works out a rate from your own spending.
Related pages
- Consumer price index: what the CPI measures, the basket, how the rate is calculated, core measures and indexing
- Inflation calculator: converts an amount between years
- How to protect savings from inflation
- Average grocery bill in Canada
- All cost of living guides
Sources
The figures and rules on this page come from these sources, last checked against them between September 24, 2026 and October 26, 2026. How we check facts.
- Bank of Canada: Inflation
- Bank of Canada: Projections
- Statistics Canada: The Daily — Consumer Price Index, August 2026
- Statistics Canada: Document
- Statistics Canada: Consumer Price Index, monthly, not seasonally adjusted
- Statistics Canada: Major economic releases
- Statistics Canada: Consumer Price Index, annual average, not seasonally adjusted