The annual inflation rate in Canada fell to 2.5% in July of 2024 from 2.7% in the previous month, matching market expectations, to mark the softest increase in consumer prices since March of 2021. The result was aligned with the Bank of Canada’s forecasts that inflation would drop toward the 2.5% mark in the second half of the year, although inflation is still due to bounce due to incoming base effects for gasoline prices. Inflation decelerated for shelter (5.7% vs 6.2% in June), amid a broad-based decline in electricity costs, mortgage rates, and rent. Also, inflation slowed slightly for food (2.7% vs 2.8%) and held unchanged for transportation (2%) as an increase in gasoline (1.9% vs 0.4%) offset a drop for passenger vehicles (-1.4% vs -0.4%). Additionally, the closely followed median and trimmed-mean core rates were below expectations at 2.4% and 2.7%, respectively, adding to dovish expectations for the BoC. From the previous month, the Canadian CPI rose by 0.4%. source: Statistics Canada
Inflation Rate in Canada decreased to 2.50 percent in July from 2.70 percent in June of 2024. Inflation Rate in Canada averaged 3.15 percent from 1915 until 2024, 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 2024.
Inflation Rate in Canada decreased to 2.50 percent in July from 2.70 percent in June of 2024. Inflation Rate in Canada is expected to be 2.30 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 2.00 percent in 2025, according to our econometric models.
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 | ||
|---|---|---|---|---|---|---|---|---|
| 2.50 | 2.70 | 21.60 | -17.80 | 1915 - 2024 | percent | Monthly | 2002=100 |
News Stream
Canada Inflation Falls to Over 3-Year Low
The annual inflation rate in Canada fell to 2.5% in July of 2024 from 2.7% in the previous month, matching market expectations, to mark the softest increase in consumer prices since March of 2021. The result was aligned with the Bank of Canada’s forecasts that inflation would drop toward the 2.5% mark in the second half of the year, although inflation is still due to bounce due to incoming base effects for gasoline prices. Inflation decelerated for shelter (5.7% vs 6.2% in June), amid a broad-based decline in electricity costs, mortgage rates, and rent. Also, inflation slowed slightly for food (2.7% vs 2.8%) and held unchanged for transportation (2%) as an increase in gasoline (1.9% vs 0.4%) offset a drop for passenger vehicles (-1.4% vs -0.4%). Additionally, the closely followed median and trimmed-mean core rates were below expectations at 2.4% and 2.7%, respectively, adding to dovish expectations for the BoC. From the previous month, the Canadian CPI rose by 0.4%.
2024-08-20
Canada Inflation Rate Unexpectedly Slows in June
The annual inflation rate in Canada eased to 2.7% in June of 2024 from 2.9% in the earlier month, surprising market expectations that it would remain at the 2.9% mark, equaling the three-year low from April to resume the disinflation trend in Canadian consumer prices. The result was broadly in line with the BoC’s forecasts that CPI inflation would remain near the 3% mark in the first half of the year. Inflation fell considerably for transportation (2% vs 3.5% in May) amid a sharp slowdown in the cost of gasoline (0.4% vs 5.6%), coinciding with OPEC’s decision to gradually phase out production cuts. While remaining elevated, inflation also dropped for shelter (6.4% vs 6.2%) as rate cuts by the BoC and lower bond yields ease mortgage rates and rental market competition. Still, prices accelerated for food (2.8% vs 2.4%), amid more expensive grocery prices. The large share of gasoline prices in disinflation drove the trimmed mean core inflation rate to remain unchanged at 2.9%.
2024-07-16
Canada Inflation Rate Unexpectedly Rises
The annual inflation rate in Canada rose to 2.9% in May of 2024 from the three-year low of 2.7% in the earlier month, contrasting with market expectations that expected a slowdown to 2.6%. Despite remaining consistent with the BoC’s forecasts that inflation would remain near the 3% mark in the first half of the year, the halt to the disinflation trend challenged earlier bets that the central bank would continue loosening monetary policy. Prices accelerated for transportation (3.5% vs 3.1% in April), lifted by a 4.5% increase in air transportation prices. Inflation was also higher for food (2.4% vs 2.3%) amid higher grocery costs (1.5% vs 1.4%), the first acceleration since June 2023. Additionally, costs rose faster for health and personal care (3.6% vs 3%) and fell to a smaller extent for household operations, furnishings, and equipment (-1.5% vs -2.1%). While refraining from increasing, inflation remained high for shelter (6.4%). From the previous month, the Canadian CPI rose by 0.6%.
2024-06-25
