Consumer Price Index, December 2024
Released: 2025-01-21
The Consumer Price Index (CPI) rose 1.8% on a year-over-year basis in December, down from a 1.9% increase in November. Food purchased from restaurants and alcoholic beverages purchased from stores contributed the most to the deceleration. The CPI excluding food rose 2.1% in December.
A temporary GST/HST break on certain goods was introduced on December 14, 2024. The major components impacted by the tax break were food; alcoholic beverages, tobacco products, and recreational cannabis; recreation, education, and reading; and clothing and footwear. This does not mean that each individual index within a major component was affected.
On a monthly basis, the CPI declined 0.4% in December, following a flat month in November. On a seasonally adjusted monthly basis, the CPI rose 0.2%.
Chart 1
Prices decline in two of the eight major components in December
Prices decline for items impacted by the GST/HST break
Canadians paid less for food purchased from restaurants in December (-1.6%) on a year-over-year basis. This was the index's first annual decline, paired with its largest monthly decline (-4.5%) amid the GST/HST break.
On a year-over-year basis, prices for alcoholic beverages purchased from stores declined 1.3% in December, compared with a 1.9% increase in November. On a monthly basis, prices fell 4.1%, almost tripling what had previously been the largest monthly decline recorded for the series in December 2005 (-1.4%).
Prices for toys, games (excluding video games) and hobby supplies decreased 7.2% year over year in December 2024, down from a 0.6% decline in November. In addition, the children's clothing index fell 10.6% in December compared with the same month in 2023.
GST/HST break
The prices included in the Consumer Price Index (CPI) are final prices, inclusive of all excise and other taxes paid by consumers. In particular, prices include the Goods and Services Tax (GST), provincial retail sales taxes (PST) or harmonized sales taxes (HST), as well as any environmental, liquor and tobacco taxes if applicable. This means that the CPI could change as a result of changes in any of these taxes.
Ahead of the tax break, a review of all representative products within the CPI was conducted to apply changes to taxation patterns starting on December 14, 2024. Approximately 10% of the All-items CPI basket is affected by the tax exemption.
Prices in provinces with HST were more impacted by the tax break. Conversely, prices in provinces where federal and provincial sales taxes are not combined were less impacted, as PST was not included in the tax break.
The impact of the GST/HST break will continue in January 2025, as the tax exemption will apply to the full month, whereas 18 days were impacted in December 2024.
Statistics Canada will continue to monitor developments in tax changes and the impact on consumer price inflation.
Chart 2
Prices fall for indexes impacted by the GST/HST exemption in December
Prices for shelter increase at a slightly slower pace but remain elevated
The shelter component grew at a slightly slower pace in December, rising 4.5% year over year following a 4.6% increase in November.
Rent prices decelerated on a year-over-year basis in December (+7.1%) compared with November (+7.7%). However since December 2021, rent prices have increased 22.1%.
The mortgage interest cost index decelerated for the 16th consecutive month, reaching 11.7% year over year in December 2024, the smallest increase since October 2022 (+11.4%) as interest rates continued to rise.
Gasoline prices rise due to base-year effect
Year over year, prices for gasoline rose 3.5% in December compared with a 0.5% decline in November. The increase was mainly the result of a base-year effect as prices declined 4.4% month over month in December 2023, when there was uncertainty regarding oil demand coupled with high levels of supply, which put downward pressure on prices.
On a monthly basis, gasoline prices fell 0.6% in December 2024.
Chart 3
Gasoline prices decline month over month in December
Consumers pay more for travel services
Year over year, prices for travel services rose 7.9% in December, following a 6.7% decline in November. Prices for travel tours increased 5.7% after declining 12.0% in November. The increase was attributed to a base-year effect, as the month over month price decline in December 2023 (-18.2%) was larger than usual, following unseasonably high prices for tours in November 2023 (+4.5%).
Prices for traveller accommodation rose 13.6% year over year in December 2024, with upward pressure coming from British Columbia (+56.7%). On a monthly basis, prices rose 62.0% in British Columbia. The swift month-over-month increase was the largest on record for any province and coincided with a high-profile concert series.
2024 annual review
Today, Statistics Canada publishes the release Consumer Price Index: Annual review, 2024, highlighting the annual average consumer inflation in Canada and the regions in 2024.
Explore the Consumer Price Index tools
Check out Statistics Canada's Food Price Data Hub, which features a variety of food price related statistics, articles and tools.
Check out the Personal Inflation Calculator. This interactive calculator allows you to enter dollar amounts in the common expense categories to produce a personalized inflation rate, which you can compare to the official measure of inflation for the average Canadian household—the Consumer Price Index (CPI).
Browse the Consumer Price Index Data Visualization Tool to access current (Latest Snapshot of the CPI) and historical (Price trends: 1914 to today) CPI data in a customizable visual format.
Regional highlights
In December, prices decelerated on a year-over-year basis in the Atlantic provinces and Ontario, partly due to lower prices for food purchased from restaurants.
Prices also decelerated year over year in Alberta, stemming from slower price growth for rent in December (+6.8%) compared with the previous month (+11.3%).
Chart 4
The Consumer Price Index rises at a slower pace in six provinces in December
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Note to readers
Visit the Consumer Price Index portal to find all Consumer Price Index (CPI) data, publications, interactive tools, and announcements highlighting new products and upcoming changes to the CPI in one convenient location.
Upcoming Enhancement: Resale housing data for additional cities to be incorporated into the Mortgage Interest Cost Index
With the release of the January 2025 CPI next month, the Mortgage Interest Cost Index (MICI) will be enhanced by expanding its use of the Canadian Real Estate Association MLS Home Price Index.
The MICI represents 5.58% of the 2023 CPI basket and is part of the shelter component of the CPI.
Detailed documentation on the MICI house sub-index is available in "Shelter in the Canadian CPI: An overview, 2023 update."
Real-time data tables
Real-time data table 18-10-0259-01 will be updated on February 3. For more information, consult the document, "Real-time data tables."
Next release
The CPI for January will be released on February 18.
Products
The "Consumer Price Index Data Visualization Tool" is available on the Statistics Canada website.
More information on the concepts and use of the Consumer Price Index (CPI) is available in The Canadian Consumer Price Index Reference Paper (62-553-X).
For information on the history of the CPI in Canada, consult the publication Exploring the first century of Canada's Consumer Price Index (62-604-X).
Two videos, "An Overview of Canada's Consumer Price Index (CPI)" and "The Consumer Price Index (CPI) and Your Experience of Price Change," are available on Statistics Canada's YouTube channel.
The podcast ''Eh Sayers Episode 18 - Why Food Inflation Is Such A Hard Nut To Crack'' is also available.
Find out answers to the most common questions posed about the CPI in the context of the COVID-19 pandemic and beyond.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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