Inflation Canada 2021
Average inflation: 3.4%
Current Inflation
Inflation is high at 3.4%, well above the ECB target.
Peak and Trough
The highest inflation was in December at 4.8%. The lowest inflation was in January at 1.0%.
- Highest month
- December: 4.8%
- Lowest month
- January: 1.0%
- Difference
- 3.8 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Transport with an average of 9.0%. The lowest price increase was in Communication with an average of -7.4%.
- Highest increase
- Transport: 9.0%
- Lowest increase
- Communication: -7.4%
Historical Context
Current inflation is 1.4% higher than the 5-year average of 2.0%. This approaches the highest level since records began (3.4% in 2021).
- 5-year average
- 2%
- 10-year average
- 1.7%
- All-time high (2021)
- 3.4%
- All-time low (2009)
- 0.3%
Trend
Inflation shows an upward trend. Compared to 2020, inflation has risen by +2.7 percentage point.
- Change vs. previous year
- +2.7 percentage points
- Largest monthly swing
- December: +4.1 percentage points
ECB Target
Inflation is 1.4% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this inflation rate, purchasing power noticeably decreases. Without a salary increase, you can buy less with the same money.
What you could buy for €100 this year will cost approximately €103.40 next year at this inflation rate.
Multi-year trend
Monthly figures 2021
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2020 |
|---|---|---|
| January | 1.0% | -1.4 |
| February | 1.1% | -1.1 |
| March | 2.2% | +1.3 |
| April | 3.4% | +3.6 |
| May | 3.6% | +4.0 |
| June | 3.1% | +2.4 |
| July | 3.7% | +3.6 |
| August | 4.1% | +4.0 |
| September | 4.4% | +3.9 |
| October | 4.7% | +4.0 |
| November | 4.7% | +3.7 |
| December | 4.8% | +4.1 |
| Average | 3.4% |
Data source
Data from OECD. Last updated: 11/01/2026.