Canada Inflation Rate Monthly Analysis: Canada Consumer Price Index (2024)

FAQs

What is Canada's current monthly rate of inflation? ›

Canada Inflation Rate is at 2.53%, compared to 2.67% last month and 3.27% last year. This is lower than the long term average of 3.15%.

Basic Info. Canada Consumer Price Index is at a current level of 161.30, up from 160.80 last month and up from 157.30 one year ago. This is a change of 0.31% from last month and 2.54% from one year ago.

The BoC was looking for inflation to average around 2.5 per cent in the second half of 2024 and not return to the 2 per cent target until next year. Monthly inflation data can be bumpy, so Mr. Macklem and the rest of the governing council likely aren't popping champagne corks yet.

The CPI is widely used as an indicator of the change in the general level of consumer prices or the rate of inflation. Since the purchasing power of money is affected by changes in prices, the CPI is useful to virtually all Canadians.

Not seasonally adjusted CPI measures The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.5 percent over the last 12 months to an index level of 314.796 (1982-84=100). For the month, the index increased 0.1 percent prior to seasonal adjustment.

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's CPI is expected to decline for the second consecutive month, with the headline reading projected to narrow to 2.5% in July from 2.7% per annum the month prior.

The Consumer Price Index (CPI) is an indicator of changes in consumer prices experienced by Canadians. It is obtained by comparing, over time, the cost of a fixed basket of goods and services purchased by consumers.

Canada Core Inflation Rate (I:CCIRUMQ)

Canada Core Inflation Rate is at 2.70%, compared to 2.85% last month and 3.42% last year. This is lower than the long term average of 3.54%.

Historical context: Mortgage rates will likely gravitate lower over the long term, to a historical trend in the high 3% range. The market consensus on the mortgage interest rate forecast in Canada is for the Central Bank to cut rates by 0.25% from 4.25% to 4% at their October 2024 meeting.

What is the CPI inflation rate for 2024? ›

On the basis of these inflation forecasts, average consumer price inflation should be 3.2% in 2024 and 1.9% in 2025, compared to 4.06% in 2023 and 9.59% in 2022.

Basic Info. US Expected Change in Inflation Rates: Next 5 Years is at 3.10%, compared to 3.00% last month and 2.80% last year. This is lower than the long term average of 3.19%.

The headline consumer price index in the U.S. has grown at an annualized 4.3% from December to April, compared to just 1.3% in Canada. In a previous Proof Point, we explained how this economic divergence should warrant different monetary policy responses from the two central banks.

With demand increasingly strong and supply chains still impaired, many businesses began passing on higher costs to their customers by raising prices. These conditions resulted in global inflation taking hold in Canada.

Current Canada Inflation Rate: 2.5%

The current annual inflation rate is 2.5%, the lowest since February 2021.

Inflation Rate MoM measures month over month change in the price of goods and services.

Core Inflation Rate in Canada averaged 2.25 percent from 1984 until 2024, reaching an all time high of 6.20 percent in June of 2022 and a record low of 0.00 percent in June of 1984. source: Statistics Canada.