Canada’s Inflation Rate Rises to 2.4% in December

Canada’s inflation rate picked up slightly at the end of 2025, with the Consumer Price Index rising 2.4 per cent year over year in December, up from a 2.2 per cent increase in November, according to new data from Statistics Canada.

Credit: Source(s): Table 18-10-0004-01/Statistics Canada

The faster annual pace was largely linked to the temporary GST and HST exemption that began on December 14, 2024, and ended in February 2025. Items that were exempt from tax during that period recorded monthly price declines at the time, which have now dropped out of the year-over-year comparison. That shift added upward pressure to the headline CPI.

Offsetting some of that pressure was cheaper gasoline. Gasoline prices fell 13.8 per cent compared with December 2024, following a 7.8 per cent decline in November. Excluding gasoline, the CPI rose 3.0 per cent year over year, up from 2.6 per cent the month before. On a monthly basis, overall prices declined 0.2 per cent in December, while the seasonally adjusted index increased 0.3 per cent.

Food prices remained a key driver of inflation. Grocery prices were unchanged month to month but rose 5.0 per cent year over year. Coffee prices climbed 30.8 per cent, while fresh or frozen beef increased 16.8 per cent. Restaurant food prices rose 8.5 per cent annually, accelerating sharply from November’s 3.3 per cent increase.

Several other categories posted faster price growth, including toys, games and hobby supplies at 7.5 per cent, children’s clothing at 4.8 per cent, confectionery at 14.2 per cent, and snack products such as potato chips at 7.9 per cent.

Travel-related prices showed smaller annual declines. Air transportation prices fell 0.8 per cent year over year, compared with a 5.9 per cent drop in November, despite a 34.5 per cent monthly increase during the holiday season. Travel tour prices declined 3.2 per cent annually but rose 3.6 per cent from November.

Source(s): Table 18-10-0004-01/Statistics Canada

Prices increased at a faster pace in nine provinces in December. British Columbia was an exception, where traveller accommodation prices fell 34.5 per cent year over year, reflecting a base-year effect tied to unusually high prices during major Vancouver concerts in December 2024.

Statistics Canada also released its Consumer Price Index: Annual Review, 2025, summarizing average inflation trends nationally and by region.