Inflation rates by country and year

0%3.1%6.2%9.4%12.5%
0%3.1%6.2%9.4%12.5%
19601.4%
19921.5%
20252.1%
Source: World Bank

Data: World Bank, annual %. For information only — not financial advice.

Year2025Inflation Rate2.1%

Behind the curve

Turning points in Canada

  1. 1973↑ Upward pressure

    The first oil shock — Wikipedia (opens in a new tab)

    Rising world oil prices flowed through to Canadian energy and production costs. Inflation climbed through 1974 even as the Bank of Canada tightened, easing only as the shock faded.

    Bank of Canada
  2. 1979↑ Upward pressure

    The second oil shock — Wikipedia (opens in a new tab)

    A second round of oil-price increases pushed Canadian inflation into double digits in the early 1980s, prompting the Bank of Canada's disinflation campaign.

    Bank of Canada
  3. 1991↕ Mixed effects

    The Goods and Services Tax — Wikipedia (opens in a new tab)

    The federal Goods and Services Tax took effect in January 1991. It lifted the measured price level once, but the simultaneous recession dampened demand, leaving annual inflation mixed.

    Statistics Canada · Consumer Price Index
  4. 2009↓ Downward pressure

    The global financial crisis — Wikipedia (opens in a new tab)

    The global financial crisis and the collapse of commodity prices cut demand, briefly pushing Canadian inflation close to zero in 2009.

    Bank of Canada
  5. 2020↓ Downward pressure

    The pandemic recession — Wikipedia (opens in a new tab)

    Lockdowns and the oil-price collapse suppressed demand and energy costs, keeping inflation near zero through 2020.

    Bank of Canada
  6. 2022↑ Upward pressure

    The post-pandemic inflation surge — Wikipedia (opens in a new tab)

    Recovering demand, supply bottlenecks and higher energy and food prices pushed Canadian inflation to a four-decade high in 2022.

    Statistics Canada · Consumer Price Index Bank of Canada

These are selected historical influences, not a complete account of inflation. An upward-pressure event can coincide with a peak when its inflationary effect has already occurred or when other forces begin pushing inflation lower. The markers show the years in which events occurred, although their effects may extend into later years.

What is the inflation in Canada?

The annual inflation rate in Canada was 2.1% in 2025, the most recent year in the World Bank dataset. That means prices rose 2.1% on average compared with the year before. Use the chart above to explore Canada's full inflation history from 1960 to 2025, and to compare it with any other country.

How inflation in Canada has changed

Inflation in Canada peaked at 12.5% in 1981 and reached its lowest point at 0.2% in 1994. Averaged across the 66 years of available data (1960–2025), the rate has been 3.7% per year.

Frequently asked questions about inflation in Canada

What is the current inflation rate in Canada?

The latest available annual figure is 2.1% in 2025, from the World Bank. Because the figures are reported annually, they may not reflect the most recent monthly reading published by Canada's statistical office.

What was the highest inflation rate in Canada?

The highest annual inflation rate on record is 12.5%, reached in 1981.

What was the lowest inflation rate in Canada?

The lowest annual inflation rate on record is 0.2%, recorded in 1994.

Where does the inflation data for Canada come from?

All figures come from the World Bank's World Development Indicators (indicator FP.CPI.TOTL.ZG), which report annual consumer price inflation for more than 200 countries and territories from 1960 onward.