Canada Inflation Rate Eases

2025-11-17 13:36 By Andre Joaquim 1 min. read

The headline inflation rate in Canada fell to 2.2% in October of 2025 from 2.4% in the previous month, loosely converging toward the 2% threshold in the near term as projected in the Bank of Canada's baseline scenario.

Gasoline prices sank by 9.4% from the previous year, picking up from the 4.1% deflation rate last month as the persistent view of an oversupplied global crude oil market pressured prices in the sector.

Consequently, transportation inflation slowed to 0.7% from 1.7%.

Price growth also eased for food (3.4% vs 3.8% in September) due to lower price growth for food preparations (3.2%), while inflation also eased for shelter (2.5% vs 2.6%).

In the meantime, costs of cellular services jumped by 7.7% to record their first increase in over two years amid price hikes by several major wireless providers.

Inflation also rose for mortgage insurance (6.8%) and car insurance (7.3%).

Meanwhile, the trimmed-mean core inflation rate, which is closely tracked by the BoC, inched down to 3%.



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The headline inflation rate in Canada fell to 2.2% in October of 2025 from 2.4% in the previous month, loosely converging toward the 2% threshold in the near term as projected in the Bank of Canada's baseline scenario. Gasoline prices sank by 9.4% from the previous year, picking up from the 4.1% deflation rate last month as the persistent view of an oversupplied global crude oil market pressured prices in the sector. Consequently, transportation inflation slowed to 0.7% from 1.7%. Price growth also eased for food (3.4% vs 3.8% in September) due to lower price growth for food preparations (3.2%), while inflation also eased for shelter (2.5% vs 2.6%). In the meantime, costs of cellular services jumped by 7.7% to record their first increase in over two years amid price hikes by several major wireless providers. Inflation also rose for mortgage insurance (6.8%) and car insurance (7.3%). Meanwhile, the trimmed-mean core inflation rate, which is closely tracked by the BoC, inched down to 3%.
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