Consumer Price Index, January 2025
Released: 2025-02-18
The Consumer Price Index (CPI) rose 1.9% year over year in January, following an increase of 1.8% in December. Excluding gasoline, the CPI rose 1.7%.
In January, increased energy prices, notably for gasoline and natural gas, contributed the most to the acceleration. These price increases were partly offset by continued downward pressure on prices for products affected by the goods and services tax (GST)/harmonized sales tax (HST) break introduced in December. Prices for the food component fell 0.6% on a year-over-year basis in January, the first yearly decrease since May 2017, driven by a record decline in prices for food purchased from restaurants (-5.1%).
On a monthly basis, the CPI rose 0.1% in January compared with a 0.4% decline in December. On a seasonally adjusted monthly basis, the CPI rose 0.1% in January.
Chart 1
12-month change in the Consumer Price Index (CPI) and the CPI excluding gasoline
Chart 2
Food component down on a yearly basis in January, the first decline since 2017
Canadians pay more for energy
Compared with the same month one year earlier, energy prices rose 5.3% in January following a 1.0% increase in December, driven by higher prices for gasoline and natural gas.
Prices at the pump increased 8.6% on a year-over-year basis in January, up from a 3.5% increase in December. In January, prices increased the most in Manitoba (+25.9%) due to the re-introduction of the provincial gas tax at a lower rate after its temporary suspension from January to December 2024.
Chart 3
Gasoline prices increase on a monthly basis in Manitoba
On a year-over-year basis, prices for natural gas rose 4.8% in January 2025, following a 5.5% decline in December. Month over month, prices for natural gas rose 6.0% in January, with the largest provincial increase coming from British Columbia (+12.8%).
Prices increase for passenger vehicles
The purchase of passenger vehicles index rose 0.4% in January, the first year-over-year price increase in eight months.
Prices for new passenger vehicles increased 2.3% year over year in January compared with a 0.9% increase in December. On a yearly basis, prices for used vehicles continued to decline in January (-3.4%), but at a slower rate compared with December (-4.1%). This is the 13th consecutive month that prices for used vehicles have decreased year over year.
Chart 4
Prices for new passenger vehicles rise, while prices for used passenger vehicles fall
GST/HST break continues to impact certain indexes
Prices for food purchased from restaurants declined 5.1% year over year in January, which is more than triple the previous record decline of 1.6% in December 2024.
Canadians paid less for alcoholic beverages purchased from stores (-3.6%) in January 2025 compared with the same month one year earlier, following a decrease of 1.3% in December.
Prices for toys, games (excluding video games) and hobby supplies fell 6.8% on a year-over-year basis in January, after declining 7.2% in December.
Chart 5
Prices continue to fall for indexes impacted by GST/HST break
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 sales tax (PST) or harmonized sales tax (HST), as well as any environmental, liquor and tobacco taxes if applicable. This means that the CPI is affected by 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 for the February CPI, as the tax exemption was applied until February 15, 2025.
Statistics Canada will continue to monitor developments in tax changes and the impact on consumer price inflation.
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.
Statistics Canada has released an infographic, "Shrinking products, rising prices: Food-specific quantity adjustments in the Consumer Price Index." This infographic looks at the frequency of shrinkflation occurring in the CPI, specifically in the food component from 2021 to 2023. "Shrinkflation" refers to the practice of selling a smaller quantity of a product at the same price as the previously offered larger size.
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 with the official measure of inflation for the average Canadian household—the 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
On a yearly basis, prices rose at a faster pace in six provinces, were unchanged in two provinces and fell in two provinces in January compared with December.
The faster price growth in Manitoba and Saskatchewan in January was driven by energy prices. Excluding energy, the CPI in each of these two provinces increased 1.8% year over year.
Chart 6
The Consumer Price Index rises at a faster pace in six provinces
Focus on Canada and the United States
Tariffs affect many facets of the economy, including inflation. If tariffs were imposed by the United States and if countermeasure tariffs followed by the Canadian government, this would put upward pressure on prices paid by Canadian consumers. Read more about the potential impacts of US tariffs on the Bank of Canada's website.
No special adjustments will be required to the Consumer Price Index for tariffs, as their effect is embedded in the final prices collected.
Statistics Canada will continue to monitor developments on tariffs and the impact on consumer price inflation.
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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.
Enhancement: Resale housing data for additional cities incorporated into the Mortgage Interest Cost Index
With the release of the January 2025 CPI, the Mortgage Interest Cost Index (MICI) has been 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 March 3. For more information, consult the document, "Real-time data tables."
Next release
The CPI for February will be released on March 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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