The annual inflation rate in Canada eased to 1.7% in July 2025, from 1.9% in June and below market forecasts of 1.8%, staying beneath the BoC’s 2% mid-point for a fourth consecutive month. Gasoline prices, down 16.1% in July after a 13.4% fall in June, remained the main drag on CPI, as the removal of the consumer carbon levy in April kept weighing on energy costs. Excluding gas, prices rose 2.5%, matching the pace in May and June. Meanwhile, higher grocery costs and a smaller decline in natural gas tempered the slowdown. Both food and shelter costs picked up pace, rising 3.3% and 3%, respectively, compared with 2.9% each in June. The trimmed-mean core CPI, which is closely followed by the BoC for underlying inflation, remained at 3% in July, unchanged for the third straight month. On a monthly basis, the CPI rose by 0.3% in July, after a 0.1% increase in June and matching market estimates. source: Statistics Canada

Inflation Rate in Canada decreased to 1.70 percent in July from 1.90 percent in June of 2025. Inflation Rate in Canada averaged 3.14 percent from 1915 until 2025, reaching an all time high of 21.60 percent in June of 1920 and a record low of -17.80 percent in June of 1921. This page provides - Canada Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Canada Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on September of 2025.

Inflation Rate in Canada decreased to 1.70 percent in July from 1.90 percent in June of 2025. Inflation Rate in Canada is expected to be 2.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Canada Inflation Rate is projected to trend around 2.70 percent in 2026 and 2.30 percent in 2027, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-07-15 12:30 PM
Inflation Rate YoY
Jun 1.9% 1.7% 1.9% 1.5%
2025-08-19 12:30 PM
Inflation Rate YoY
Jul 1.7% 1.9% 1.8% 1.8%
2025-09-16 12:30 PM
Inflation Rate YoY
Aug

Components Last Previous Unit Reference
Food Inflation 3.30 2.90 percent Jul 2025
Rent Inflation 5.10 4.70 percent Jul 2025
Services Inflation 2.80 3.00 percent Jul 2025

Related Last Previous Unit Reference
Consumer Price Index CPI 164.90 164.40 points Jul 2025
Core Consumer Prices 159.80 159.60 points Jul 2025
Core Inflation Rate YoY 2.60 2.60 percent Jul 2025
CPI Housing Utilities 187.90 187.30 points Jul 2025
CPI Transportation 173.30 172.60 points Jul 2025
Export Prices 137.20 136.60 points Jul 2025
GDP Implicit Price 129.30 129.30 points Jun 2025
Import Prices 136.60 134.60 points Jul 2025
Inflation Rate YoY 1.70 1.90 percent Jul 2025
Inflation Rate MoM 0.30 0.10 percent Jul 2025
Producer Prices 131.20 130.30 points Jul 2025
PPI YoY 2.60 1.90 percent Jul 2025
Raw Materials Prices MoM 144.50 144.10 points Jul 2025

Canada Inflation Rate
In Canada, the most important categories in the CPI basket are Shelter (30 percent of the total weight) and Transportation (17 percent). Food accounts for 16 percent; Household Operations, Furnishings and Equipment for 15 percent; Recreation, Education and Reading for 9 percent; Health and Personal Care for 5 percent; Alcoholic Beverages and Tobacco Products for 5 percent and Clothing and Footwear for the remaining 4 percent. The CPI basket is reviewed every four years on the basis of household surveys. The current weights are based on spending patterns in 2002.
Actual Previous Highest Lowest Dates Unit Frequency
1.70 1.90 21.60 -17.80 1915 - 2025 percent Monthly
2002=100

News Stream
Canada Inflation Rate Falls More than Expected
The annual inflation rate in Canada eased to 1.7% in July 2025, from 1.9% in June and below market forecasts of 1.8%, staying beneath the BoC’s 2% mid-point for a fourth consecutive month. Gasoline prices, down 16.1% in July after a 13.4% fall in June, remained the main drag on CPI, as the removal of the consumer carbon levy in April kept weighing on energy costs. Excluding gas, prices rose 2.5%, matching the pace in May and June. Meanwhile, higher grocery costs and a smaller decline in natural gas tempered the slowdown. Both food and shelter costs picked up pace, rising 3.3% and 3%, respectively, compared with 2.9% each in June. The trimmed-mean core CPI, which is closely followed by the BoC for underlying inflation, remained at 3% in July, unchanged for the third straight month. On a monthly basis, the CPI rose by 0.3% in July, after a 0.1% increase in June and matching market estimates.
2025-08-19
Canada Inflation Rate Rises as Expected
The annual inflation rate in Canada rose to 1.9% in June of 2025 from 1.7% in the previous month, aligned with market expectations. Despite the pickup, the rate remained below the Bank of Canada's mid-point target of 2% for the third straight month, consistent with the central bank's forecast that price growth should rise as tariffs and supply-disruptions may threaten material shortages. Deflation slowed sharply for fuel (-13.4% vs -15.5% in May) due to base effects, driving similar developments in overall transportation costs (-0.6% vs -1.4%). Durable goods also lifted the inflation rate, with prices accelerating for passenger vehicles (5.2% vs 4.9%) and furniture (3.3% vs 0.1%). In turn, inflation slowed for food (2.9% vs 3.4%) amid softer price growth for groceries, and shelter (2.9% vs 3%). The trimmed-mean core CPI, which the BoC uses as its main gauge for underlying inflation, was unchanged at 3% as expected.
2025-07-15
Canada Inflation Rate Holds Below BoC Target
The annual inflation rate in Canada was at 1.7% in May of 2025, remaining unchanged from the previous month, and aligned with market expectations. The inflation rate remained below the Bank of Canada's 2% target for the second straight month, holding the decline from the previous month after the removal of the federal consumer carbon tax. Price growth slowed for shelter (3% vs 3.4% in May) amid softer inflation for rent (4.5% vs 5.2%) and mortgage interest costs (6.2% vs 6.8%), consistent with lower rates by the BoC. Prices also slowed for food (3.4% vs 3.8%). In the meantime, the median and trimmed-mean core rates closely followed by the central bank edged down to 3% from 3.1% last month, in line with expectations, to halt their gradual increase from the year. From the previous month, the Canadian CPI rose by 0.6%, rebounding from the 0.1% decrease in April.
2025-06-24