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. Beginning in January 2017, the Bank’s preferred core inflation measures will be CPI-trim, CPI-median, and CPI-common. See Renewal of the Inflation-Control Target: Background Information – October 2016 for more information on these measures.
CPI and Core inflation measures
For the schedule of future consumer price index releases, please see Statistics Canada.
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.
Quarterly data and graphs. Includes definitions and historical data.
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 2016 to the end of 2021.
Browse Bank of Canada articles, research papers and publications on inflation.