Prices in Canada rose an average of 3.0% a year from 1914 to 2025, but almost never at that pace. Here is every year, and the moments that changed the trend.
Annual average CPI, change from the year before
Every year since 1915
Annual inflation
Source:Statistics Canada, table 18-10-0005-01 (annual average CPI, 1914 to 2025). Retrieved October 30, 2026.
Milestones in the data
1917: the highest annual inflation on record, +17.9%, during the First World War.
1921: the steepest fall, −12.3%. Prices also fell in 1922, 1924, 1927, 1930, 1931, 1932, 1933, 1953.
1970s and early 1980s: 12-month inflation peaked at 12.9% in July 1981. The 1970s averaged 7.3% a year.
February 1991: the Bank of Canada and the Government of Canada announced Canada’s first inflation targets, aiming to bring 12-month CPI inflation down to 3% (within a band of plus or minus 1 point) by the end of 1992 and to 2% by the end of 1995.1 Annual inflation was 5.6% in 1991 and 1.4% in 1992.
Since then: the 2% target, the midpoint of a 1% to 3% range, has been renewed several times, most recently in December 2021 for the five years to the end of 2026.2 From 1995 to 2025, prices rose an average of 2.1% a year.
2020s: 12-month inflation peaked at 8.1% in June 2022, the highest since the early 1980s.
The policy rate since 2009
Bank of Canada series V39079 begins on April 21, 2009, with the policy rate at 0.25%.
It was cut to 0.25% in March 2020 (in effect from March 27, 2020).
It reached 5.00% from July 13, 2023.
It ended 2024 at 3.25% and 2025 at 2.25%.
Latest: 2.50%, in effect from October 29, 2026.
Eras that moved prices
The story behind the numbers
1973Global shock
The first oil shock
The OPEC oil embargo that began in October 1973 drove world oil prices sharply higher, and inflation rose across most developed economies, including Canada.
Annual inflation: +7.8% in 1973, +11.0% in 1974
1975Economy and policy
Wage and price controls
With inflation in double digits, the federal government introduced the Anti-Inflation Program in the autumn of 1975, and an Anti-Inflation Board reviewed wage and price increases.
Annual inflation: +10.7% in 1975, +7.2% in 1976
1979Global shock
The second oil shock
The Iranian Revolution disrupted oil supply and prices jumped again, on top of inflation that was already high.
Annual inflation: +8.9% in 1978, +9.3% in 1979, +10.0% in 1980
1981Bank of Canada
Peak inflation and record interest rates
Inflation reached its modern high. The Bank of Canada, under Governor Gerald Bouey, kept interest rates at record levels to break it, and a deep recession followed in 1981 and 1982.
Annual inflation: +12.5% in 1981
12-month peak: 12.9% in July 1981
1984Economy and policy
Disinflation after the recession
After the recession, inflation fell to about a third of its 1981 rate and stayed close to 4% to 5% a year for the rest of the decade.
Annual inflation: +4.3% in 1984
1985 to 1989: between 3.9% and 5.1% a year
1991Bank of Canada
Canada adopts inflation targets
In February 1991 the Bank of Canada, under Governor John Crow, and the Government of Canada announced targets to bring 12-month CPI inflation down to 3% by the end of 1992 and to 2% by the end of 1995. The 2% target, the midpoint of a 1% to 3% range, has been renewed since.
Annual inflation: +5.6% in 1991, +1.4% in 1992
1997Global shock
Asian financial crisis
The crisis in Asia cut demand for commodities and pushed their prices down, which helped keep Canadian inflation low.
Annual inflation: +1.7% in 1997, +1.0% in 1998
2001Global shock
Dot-com bust and September 11
The end of the technology boom and the September 11 attacks slowed the economy, and the Bank of Canada lowered interest rates through the year.
Annual inflation: +2.5% in 2001
2008–09Global shock
Global financial crisis
The global financial crisis pushed the world economy into recession. Canada’s banks came through without failures, and the Bank of Canada cut its policy rate to its effective floor.
Annual inflation: +2.3% in 2008, +0.3% in 2009
Policy rate 0.25% when the Bank’s series begins, April 21, 2009
2015Economy and policy
Oil price collapse
A steep fall in world oil prices hit Alberta and other producing provinces. The Bank of Canada lowered its policy rate twice during the year.
Annual inflation: +1.1% in 2015
Policy rate 0.75% from January 21, 2015
Policy rate 0.50% from July 15, 2015
2020Global shock
COVID-19 pandemic
Lockdowns cut spending and prices briefly fell. Governments added income support such as the Canada Emergency Response Benefit, and the Bank of Canada cut its policy rate three times in March and began large-scale purchases of government bonds.
Annual inflation: +0.7% in 2020
Lowest 12-month change: −0.4% in May 2020
Policy rate 1.25% from March 4, 2020
Policy rate 0.75% from March 16, 2020
Policy rate 0.25% from March 27, 2020
2022Bank of Canada
Post-pandemic inflation surge
Reopening demand, supply shortages and higher energy and food prices after the invasion of Ukraine pushed inflation to its highest level since the early 1980s. The Bank of Canada, under Governor Tiff Macklem, raised its policy rate quickly and repeatedly.
Annual inflation: +3.4% in 2021, +6.8% in 2022, +3.9% in 2023
12-month peak: 8.1% in June 2022, the highest since January 1983
10 increases took the policy rate from 0.25% to 5.00% between March 2022 and July 2023
2024–2025Bank of Canada
Back near the target
Inflation returned close to the 2% target and the Bank of Canada lowered its policy rate from its peak.
Annual inflation 2024: +2.4%
Annual inflation 2025: +2.1%
Policy rate at the end of 2024: 3.25%
Policy rate now: 2.50%, from October 29, 2026
Source:Statistics Canada, table 18-10-0005-01 (annual average CPI, 1914 to 2025); Statistics Canada, table 18-10-0004-01 (monthly CPI, latest September 2026, released October 19, 2026); Bank of Canada Valet API (policy rate V39079; CPI-trim, CPI-median, CPI-common). Retrieved October 30, 2026. Inflation figures are calculated from Statistics Canada’s CPI (annual averages, and 12-month changes in the monthly index). Policy rates are the Bank of Canada’s target for the overnight rate (Valet series V39079, which begins in 2009), shown from the date each change took effect.
Average inflation by decade
Decade
Years covered
Average per year
1910s
1915–1919
10.31%
1920s
1920–1929
-0.63%
1930s
1930–1939
-1.76%
1940s
1940–1949
4.71%
1950s
1950–1959
2.29%
1960s
1960–1969
2.56%
1970s
1970–1979
7.34%
1980s
1980–1989
6.46%
1990s
1990–1999
2.19%
2000s
2000–2009
2.10%
2010s
2010–2019
1.74%
2020s
2020–2025
3.19%
Source:Statistics Canada, table 18-10-0005-01 (annual average CPI, 1914 to 2025); Statistics Canada, table 18-10-0004-01 (monthly CPI, latest September 2026, released October 19, 2026); Bank of Canada Valet API (policy rate V39079; CPI-trim, CPI-median, CPI-common). Retrieved October 30, 2026. Decade averages are annualized changes in the annual average CPI. Last 10 years: 2.6% a year.
