June 6, 2022
The inflation section contains a brief description of the measures of inflation the Bank of Canada monitors, and provides links to inflation data, the agreement on the inflation-control target, and related research and publications and explainers.
December 13, 2021: Our updated monetary policy framework is here. Read how the Bank of Canada controls inflation and contributes to Canada’s economic and financial welfare.
Measures of inflation
The Bank of Canada aims to keep inflation at the 2 per cent midpoint of an inflation-control target range of 1 to 3 per cent. The inflation target is expressed as the year-over-year increase in the total consumer price index (CPI). The CPI is the most relevant measure of the cost of living for most Canadians because it is made up of goods and services that Canadians typically buy, such as food, housing, transportation, furniture, clothing, recreation, and other items.
The Bank also monitors a set of “core” inflation measures that allow the Bank to “look through” temporary changes in total CPI and focus on the underlying trend of inflation. In this sense, these core measures of inflation act as an operational guide to help the Bank achieve the total CPI inflation target. Since January 2017, the Bank’s preferred core inflation measures are CPI-trim, CPI-median, and CPI-common.
For more information on these measures:
- Renewal of the Inflation-Control Target (October 2016)
The Measurement and Use of Core Inflation - Monetary Policy Framework Renewal (December 2021)
Chapter 2, Box 1: An updated assessment of the core measures
Data
CPI and Core inflation measures
For the schedule of future consumer price index releases, see Statistics Canada.
Key Inflation Indicators and the Target Range
Data and definitions: Total CPI, CPI-trim, CPI-median, CPI-common and Target Range.
Indicators of Capacity and Inflation Pressures for Canada
Quarterly data and graphs. Includes definitions and historical data.
Inflation Calculator
The Inflation Calculator uses monthly consumer price index data from 1914 to the present to show changes in the cost of a fixed "basket" of consumer purchases.
Agreement on the inflation-control target
In 1991, the Bank of Canada and the Minister of Finance agreed on an inflation-control target framework to guide Canadian monetary policy. The target agreement has been renewed several times since, most recently in 2021 to the end of 2026.
Our renewed monetary policy framework
Every five years, the Bank of Canada and the Government of Canada review and renew our agreement on Canada’s monetary policy framework. In 2021, we renewed Canada’s flexible inflation-targeting framework for 2022 to 2026.
Research and reference material
Browse Bank of Canada articles, research papers and publications on inflation.
Explainers
May 19, 2021
The consumer price index (CPI) tracks how much the average Canadian household spends, and how that changes over time. At the Bank of Canada, we use it to target inflation.
Understanding the consumer price index
Content Type(s):
Explainers
Topic(s):
Inflation and prices,
Inflation targets
August 13, 2020
At the Bank of Canada, we aim to keep inflation close to 2 percent.
Understanding inflation targeting
Content Type(s):
Explainers
Topic(s):
Inflation and prices,
Inflation targets
August 13, 2020
Inflation is a persistent rise in the average level of prices over time.
Understanding inflation
Content Type(s):
Explainers
Topic(s):
Inflation and prices,
Inflation: costs and benefits