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What is Canada's inflation rate?

Prices rose 1.8% over the past year.

1.8%
Year-over-year CPI
Jan 2026

The Consumer Price Index (CPI) tracks changes in the price of a fixed basket of goods and services. The Bank of Canada targets 2% inflation. When CPI rises faster, your dollar buys less.

Inflation over time

After decades of stable 2% inflation, prices surged in 2022 reaching 8.1% in June — the highest since 1983. Aggressive Bank of Canada rate hikes brought inflation back near target.

Year-over-year CPI change, annual average (%)

Source: Statistics Canada, Table 18-10-0004-01

What's driving inflation?

Not all prices move equally. As of Jan 2026, shelter costs remain the largest contributor to inflation, followed by food prices.

CPI contribution by category, Jan 2026 (% change YoY)

Source: Statistics Canada, Table 18-10-0004-01

What is Canada's inflation rate? — Outcome Canada