Canada’s inflation rate now
The all-items Consumer Price Index (CPI) rose 3.0% year over year in August 2026 (Statistics Canada, released September 14, 2026; next release October 19, 2026). That is above the Bank of Canada’s 2% target. The rate was 1.8% in February 2026.
Energy prices were up 15.4% and gasoline 22.8% from a year earlier. In its release for August 2026, Statistics Canada said gasoline prices remained elevated as the conflict in the Middle East continued, and that the CPI excluding gasoline rose 2.4%. Shelter prices rose 1.5% and food 2.8%, down from 7.3% for food in January 2026. For what these prices add up to in a household budget, see average household expenses in Canada and the rest of our cost of living in Canada guides.
| Metric | Value (August 2026) |
|---|---|
| Yearly inflation (12-month CPI change) | 3.0% |
| Two-year inflation | 4.9% |
| Three-year inflation | 7.0% |
| Average of CPI-trim, CPI-median and CPI-common (WealthNorth calculation) | 2.2% |
| Core CPI (all-items excl. food & energy) | 2.1% |
| CPI-trim | 1.9% |
| CPI-median | 2.0% |
| CPI-common | 2.6% |
| Energy (special aggregate) | 15.4% |
Source: Statistics Canada CPI release for August 2026, fetched September 24, 2026.
Bank of Canada policy rate (target for the overnight rate): 2.25%, unchanged since the decision announced on October 29, 2025.
Monthly inflation rate, 2024 to 2026
The table shows the 12-month change in the all-items CPI for each month: how much higher prices were than in the same month a year earlier. This is the headline rate Statistics Canada reports and the measure the Bank of Canada’s target uses.
The rate went from 2.9% in January 2024 to 1.8% in December 2024. It was 1.9% in January 2025 and 2.4% in September 2025. After 1.8% in February 2026, it was 3.2% in May and 3.0% in August.
| Month | 2024 | 2025 | 2026 |
|---|---|---|---|
| January | 2.9% | 1.9% | 2.3% |
| February | 2.8% | 2.6% | 1.8% |
| March | 2.9% | 2.3% | 2.4% |
| April | 2.7% | 1.7% | 2.8% |
| May | 2.9% | 1.7% | 3.2% |
| June | 2.7% | 1.9% | 2.8% |
| July | 2.5% | 1.7% | 3.0% |
| August | 2.0% | 1.9% | 3.0% |
| September | 1.6% | 2.4% | n/a |
| October | 2.0% | 2.2% | n/a |
| November | 1.9% | 2.2% | n/a |
| December | 1.8% | 2.4% | n/a |
Source: Statistics Canada, table 18-10-0004-01. 12-month percentage change in the all-items CPI, calculated from the monthly index. “n/a”: not yet published.
Annual inflation rate, 1990 to 2025
Each annual rate is the change in the year’s average CPI from the year before. The Bank of Canada and the federal government agreed on an inflation-control target framework in 1991, so most of this table covers years with a target in place.
| Year | Inflation Rate | Year | Inflation Rate | Year | Inflation Rate |
|---|---|---|---|---|---|
| 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% |
Source: Statistics Canada, annual average all-items CPI (table 18-10-0005-01); each rate is the change in the annual average index from the year before. The annual average is taken before rounding, so for some years the rate differs by 0.1 point from one calculated from the rounded index Statistics Canada publishes (2014: 1.9% here, 2.0% from the published index).
What the recent years show
1990 to 1992: inflation was 4.8% in 1990 and 5.6% in 1991, then 1.5% in 1992. Unemployment peaked at 12.1% in November 1992, against a peak of 13.1% in December 1982 (Statistics Canada, Labour Force Survey).
Low-inflation years: the lowest annual rates in this table were 0.2% in 1994 and 0.3% in 2009; the 2020 rate was 0.7%.
2021 to 2025: the annual rate rose to 3.4% in 2021 and 6.8% in 2022; the monthly rate reached 8.1% in June 2022. The Bank of Canada raised its policy rate from 0.25% before March 2, 2022 to 5.00% on July 12, 2023, an increase of 4.75 percentage points. Annual inflation then eased to 3.9% in 2023, 2.4% in 2024 and 2.1% in 2025.
Annual inflation rate, 1915 to 1990
| Year | Rate | Year | Rate | Year | Rate | Year | Rate |
|---|---|---|---|---|---|---|---|
| 1915 | 2.1% | 1935 | 0.5% | 1955 | 0.2% | 1975 | 10.7% |
| 1916 | 9.0% | 1936 | 2.1% | 1956 | 1.4% | 1976 | 7.5% |
| 1917 | 18.0% | 1937 | 3.6% | 1957 | 3.3% | 1977 | 8.0% |
| 1918 | 13.1% | 1938 | 0.5% | 1958 | 2.4% | 1978 | 9.0% |
| 1919 | 9.5% | 1939 | -0.8% | 1959 | 1.2% | 1979 | 9.1% |
| 1920 | 16.3% | 1940 | 4.2% | 1960 | 1.4% | 1980 | 10.1% |
| 1921 | -12.1% | 1941 | 6.0% | 1961 | 1.0% | 1981 | 12.5% |
| 1922 | -7.8% | 1942 | 4.6% | 1962 | 1.1% | 1982 | 10.8% |
| 1923 | 0.0% | 1943 | 2.2% | 1963 | 1.6% | 1983 | 5.9% |
| 1924 | -1.9% | 1944 | 0.6% | 1964 | 1.9% | 1984 | 4.3% |
| 1925 | 1.2% | 1945 | 0.6% | 1965 | 2.3% | 1985 | 4.0% |
| 1926 | 0.7% | 1946 | 3.1% | 1966 | 3.8% | 1986 | 4.2% |
| 1927 | -1.4% | 1947 | 9.0% | 1967 | 3.6% | 1987 | 4.4% |
| 1928 | 0.7% | 1948 | 14.3% | 1968 | 4.1% | 1988 | 4.0% |
| 1929 | 1.0% | 1949 | 3.5% | 1969 | 4.6% | 1989 | 5.0% |
| 1930 | -1.0% | 1950 | 2.7% | 1970 | 3.3% | 1990 | 4.8% |
| 1931 | -9.9% | 1951 | 10.5% | 1971 | 2.7% | ||
| 1932 | -9.4% | 1952 | 2.6% | 1972 | 5.0% | ||
| 1933 | -4.4% | 1953 | -1.0% | 1973 | 7.5% | ||
| 1934 | 1.2% | 1954 | 0.7% | 1974 | 11.0% |
Source: Statistics Canada, annual average all-items CPI (table 18-10-0005-01). For 1914 to 1999 the annual average is calculated from the monthly index before rounding. Rates calculated this way can differ from rates calculated from the rounded annual index that Statistics Canada publishes by up to about a point, mostly for years before 1950 (1942: 4.6% here, 3.5% from the published index).
Highs and lows in the long series
The largest annual increases in the series up to 2025 came in 1917 (18.0%) and 1920 (16.3%). Prices then fell in 1921 (-12.1%) and 1922 (-7.8%), in 1924 (-1.9%) and 1927 (-1.4%), and in each year from 1930 (-1.0%) to 1933 (-4.4%), with the steepest drops in 1931 (-9.9%) and 1932 (-9.4%). After the Second World War, inflation reached 14.3% in 1948 and 10.5% in 1951. Rates were above 10% in 1974 (11.0%), 1975 (10.7%), 1980 (10.1%), 1981 (12.5%) and 1982 (10.8%).
CPI by category
The headline rate is a weighted average of eight major components. Using the basket weights, we estimate each component’s contribution to the 3.0% headline rate in August 2026 as its weight times its 12-month change. On that estimate, transportation contributed about 1.4 percentage points, against 0.4 for shelter and 0.5 for food.
| Category | Weight in CPI Basket | August 2026 Annual Change | Contribution to Headline Rate |
|---|---|---|---|
| Alcoholic beverages, tobacco products, recreational cannabis | 3.73% | 1.7% | 0.06% |
| Clothing and footwear | 4.5% | 1.2% | 0.05% |
| Food | 16.93% | 2.8% | 0.47% |
| Health and personal care | 5.4% | 2.2% | 0.12% |
| Household operations, furnishings and equipment | 12.8% | 0.4% | 0.05% |
| Recreation, education and reading | 9.81% | 5.6% | 0.55% |
| Shelter | 28.3% | 1.5% | 0.42% |
| Transportation | 18.54% | 7.5% | 1.39% |
Source: Statistics Canada CPI basket weights and the August 2026 monthly release. Energy (a special aggregate spanning transportation fuel and household energy, not a standalone basket category) rose 15.4% year-over-year.
Transportation (18.54% of the basket, 7.5% over the year): the 12-month change in transportation prices was negative from April to August 2025 (for example -1.9% in April 2025). Statistics Canada attributed the drop in gasoline prices in April 2025 mainly to the removal of the consumer carbon price. Transportation inflation was -0.8% in February 2026 and 9.0% in May 2026.
Shelter (28.3% of the basket, 1.5%): the highest-weighted component of the basket. It includes rent (up 2.8% over the year) and mortgage interest. For rent levels rather than rent inflation, see average rent in Canada.
Food (16.93% of the basket, 2.8%): food purchased from stores rose 2.8% and food from restaurants 3.1%. For what households spend on groceries, see the average grocery bill in Canada.
Recreation, education and reading (9.81% of the basket, 5.6%) and clothing and footwear (4.5%, 1.2%) are shown in the table with the other components.
Core inflation
The Bank of Canada’s target is the total CPI, but it also follows “core” measures that set aside the most extreme price moves to show the underlying trend. Since January 2017, its preferred core measures have been CPI-trim, CPI-median and CPI-common.
| Measure | How it works (Bank of Canada) |
|---|---|
| CPI-trim | Drops the 20% of the basket (by weight) with the largest monthly price increases and the 20% with the largest decreases, 40% in all |
| CPI-median | The price change at the 50th percentile of the month’s price changes, weighted by the basket |
| CPI-common | Tracks price changes that are common across the categories of the basket |
| Measure | August 2026 | What It Suggests |
|---|---|---|
| Headline CPI (all-items) | 3.0% | Includes all volatile components |
| CPI excluding food and energy | 2.1% | Underlying trend excluding food and energy prices, which are often volatile |
| CPI-trim | 1.9% | Excludes the most extreme price movements each month |
| CPI-median | 2.0% | The single price change at the middle of the distribution |
| CPI-common | 2.6% | Statistical model of broad-based price movement |
| Average of the Bank of Canada’s three preferred core measures | 2.2% | WealthNorth calculation: simple average of CPI-trim, CPI-median and CPI-common |
In August 2026, headline CPI was 3.0%, while CPI-trim was 1.9%, CPI-median 2.0%, CPI-common 2.6% and the CPI excluding food and energy 2.1%. A gap between headline and core measures means a few categories are moving much faster or slower than the rest of the basket.
What the CPI measures, and what it leaves out
The CPI tracks the prices that households pay for goods and services, including sales taxes such as the GST. The Bank of Canada describes it as made up of goods and services Canadians typically buy, such as food, housing, transportation, furniture, clothing and recreation. The basket weights now in use come from the 2025 basket and took effect with the May 2026 CPI.
Statistics Canada’s CPI reference paper lists what is not in the index:
- Personal income taxes, because they are not tied to the purchase of any particular product
- Investments such as stocks and bonds (fees paid to brokers are included)
- House prices, which are not included directly; mortgage interest is included as part of the cost of owning a home
- Interest on credit cards and loans
- Life and disability insurance premiums
Because house prices are not counted directly, the CPI can be moderate while home prices rise or fall sharply. For price levels, see average house prices in Canada.
Your own inflation rate depends on what you spend money on. A household that spends a larger share on gasoline than the basket does felt more of the 22.8% rise in gasoline prices; one that rents saw rent rise 2.8%.
The Bank of Canada’s inflation target
The Bank of Canada aims to keep inflation at the 2% midpoint of a 1% to 3% target range, measured as the 12-month increase in the total CPI. The Bank and the federal government first agreed on the framework in 1991 and review it every 5 years; it was last renewed in 2021, and in October 2026 the Bank said its review was underway and the framework would be renewed in 2026 for a five-year period. The Bank’s main tool is its policy interest rate; how its decisions reach borrowers is covered in Bank of Canada rate history, the prime rate and how interest rates affect Canadians.
Rate decisions and inflation since 2022
| Decision date | Change (percentage points) | Policy rate after | CPI inflation that month |
|---|---|---|---|
| March 2, 2022 | 0.25 | 0.50% | 6.7% |
| July 13, 2022 | 1.00 | 2.50% | 7.6% |
| January 25, 2023 | 0.25 | 4.50% | 5.9% |
| June 5, 2024 | -0.25 | 4.75% | 2.7% |
| October 23, 2024 | -0.50 | 3.75% | 2.0% |
| January 29, 2025 | -0.25 | 3.00% | 1.9% |
| March 12, 2025 | -0.25 | 2.75% | 2.3% |
| September 17, 2025 | -0.25 | 2.50% | 2.4% |
| October 29, 2025 | -0.25 | 2.25% | 2.2% |
Selected decisions. Rate decisions: Bank of Canada, target for the overnight rate. Inflation: all-items CPI, 12-month change for the month of the decision (Statistics Canada).
Inflation by province
The 12-month change in the CPI differs between provinces because the prices households pay for energy, housing and food change at different speeds in each one.
| Province | 12-month CPI change |
|---|---|
| British Columbia | 3.0% |
| Alberta | 3.8% |
| Saskatchewan | 3.5% |
| Manitoba | 4.4% |
| Ontario | 2.4% |
| Quebec | 3.1% |
| New Brunswick | 4.6% |
| Nova Scotia | 5.1% |
| Prince Edward Island | 4.4% |
| Newfoundland and Labrador | 4.3% |
Statistics Canada, table 18-10-0004-01, all-items CPI by province, August 2026. See Statistics Canada’s provincial CPI tables for the latest month.
In August 2026, Nova Scotia had the highest rate (5.1%) and Ontario the lowest (2.4%). In the same release, Statistics Canada noted that prices for fuel oil and other fuels rose 43.7% over the year, putting upward pressure on prices in the Atlantic provinces, where fuel oil is more commonly used. Inflation rates show how fast prices are changing, not how high they are: for the level of living costs in each province, see cost of living by province.
What $100 bought in the past
The table shows what $100 in a past year is worth in today’s dollars, using the latest monthly index (August 2026) against each year’s annual average.
A dollar from 1970 buys about 12 cents’ worth of goods today, and a dollar from 2000 has lost about 44% of its purchasing power. At the Bank of Canada’s 2% target, prices double in roughly 35 years (the “rule of 70”: 70 divided by the inflation rate).
| Year | $100 then, in today’s dollars | Total inflation since |
|---|---|---|
| 1970 | $835 | 735% |
| 1980 | $386 | 286% |
| 1990 | $217 | 117% |
| 2000 | $178 | 78% |
| 2005 | $159 | 59% |
| 2010 | $146 | 46% |
| 2015 | $134 | 34% |
| 2020 | $124 | 24% |
Calculated as the latest monthly all-items index (169.8, August 2026) divided by the annual average index of each year (Statistics Canada).
The inflation calculator converts any amount between any two years.
How inflation reaches household finances
Wages
A raise only increases what you can buy if it is larger than inflation. With a 2% raise in a year when prices rise 3%, your pay buys about 1.0% less than it did a year earlier (1 − 1.02 ÷ 1.03). The salary calculator shows take-home pay at different salaries.
Savings
Cash earning less than the inflation rate loses purchasing power, and interest earned outside a TFSA or RRSP is also taxed. A savings account paying 3% when inflation is 2% has a real return of about 1.0% before tax (1.03 ÷ 1.02 − 1). To compare current rates with inflation, see best HISA rates and best GIC rates; how to protect savings from inflation covers the options in more detail.
Benefits and tax amounts indexed to inflation
According to the Canada Revenue Agency, certain personal income tax and benefit amounts are indexed to inflation each year using Statistics Canada’s CPI data. Increases to tax bracket thresholds and non-refundable credit amounts take effect on January 1; increases to income-tested benefits such as the Canada child benefit and the Canada Groceries and Essentials Benefit (formerly the GST/HST credit) take effect on July 1. The CRA notes that the Canada Groceries and Essentials Benefit’s indexation will resume in 2027.
| Tax year | Indexation increase (CRA) |
|---|---|
| 2023 | 6.3% |
| 2024 | 4.7% |
| 2025 | 2.7% |
| 2026 | 2.0% |
- Basic personal amount: $16,452 federally in 2026 at the enhanced level; see basic personal amount.
- TFSA dollar limit: the $5,000 limit of 2009 indexed to inflation for each later year and rounded to the nearest $500, according to the Department of Finance; $7,000 for 2026 (see how much TFSA room you have).
- Old Age Security: payment amounts are reviewed each January, April, July and October to reflect increases in the CPI, and they don’t go down when the CPI falls; OAS rose 1.4% for October to December 2026 (see Old Age Security).
- Canada Pension Plan: benefits already being paid received an annual adjustment of 2.0% for 2026 (ESDC; see CPP).
Trade and tariffs
Canada’s counter-tariffs on some US goods can raise the prices of those goods in Canada. Which goods are covered, and what the CPI shows for groceries, is on our page about US tariffs and Canadians.
Related pages
- Inflation calculator: the change in purchasing power between any two years
- Cost of living in Canada: all our cost-of-living guides
- Cost of living by province
- Average grocery bill in Canada
- Bank of Canada rate history
- Interest rate forecast
- Prime rate
Sources
The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and October 2, 2026. How we check facts.
- Bank of Canada: Inflation
- Bank of Canada: Data table
- Bank of Canada: Bank of Canada lowers policy rate to 2¼%
- Bank of Canada: Data table
- Bank of Canada: Data table
- Bank of Canada: Bank of Canada increases policy interest rate
- Bank of Canada: Bank of Canada raises policy rate 25 basis points, continues quantitative tightening
- Bank of Canada: Consumer price index
- Bank of Canada: Data table
- Bank of Canada: Data table
- Bank of Canada: Data table
- Bank of Canada: Bank of Canada increases policy interest rate by 100 basis points, continues…
- Bank of Canada: Data table
- Bank of Canada: Bank of Canada increases policy interest rate by 25 basis points, continues…
- Bank of Canada: Data table
- Bank of Canada: Bank of Canada reduces policy rate by 25 basis points
- Bank of Canada: Data table
- Bank of Canada: Bank of Canada reduces policy rate by 50 basis points to 3¾%
- Bank of Canada: Data table
- Bank of Canada: Bank of Canada reduces policy rate by 25 basis points to 3%, announces end of…
- Bank of Canada: Data table
- Bank of Canada: Bank of Canada reduces policy rate by 25 basis points to 2¾%
- Bank of Canada: Data table
- Bank of Canada: Bank of Canada lowers policy rate to 2½%
- Bank of Canada: Data table
- Bank of Canada: Data table
- Canada Revenue Agency: Indexation adjustment for personal income tax and benefit amounts
- Canada Revenue Agency: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE
- Employment and Social Development Canada: Maximum Benefit Amounts and Related Figures
- Government of Canada: Old Age Security payment amounts
- Statistics Canada: The Daily — Consumer Price Index, August 2026
- Statistics Canada: Consumer Price Index, monthly, not seasonally adjusted
- Statistics Canada: GetDataFromVectorByReferencePeriodRange
- Statistics Canada: GetDataFromVectorByReferencePeriodRange
- Statistics Canada: The Daily — Consumer Price Index, June 2022
- Statistics Canada: Basket weights of the Consumer Price Index, Canada, provinces, Whitehorse, Yellowknife…
- Statistics Canada: Statistics Canada
- Statistics Canada: Consumer Price Index (CPI) statistics, measures of core inflation and other related…
- Statistics Canada: An Analysis of the 2026 Consumer Price Index Basket Update, Based on 2025 Expenditures
- Statistics Canada: Consumer Price Index, annual average, not seasonally adjusted