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Canada's Inflation Steady at 2.2%, Core Drops Below 3%

12/15/2025

29 5 Full Breakdown

Summary

Story summary

Canada's inflation rate held at 2.2% in November, unchanged from October, according to Statistics Canada.
Food prices rose 4.2% year over year, while gasoline prices fell 7.8%.
Core inflation measures excluding volatile items dropped below 3% for the first time since March.
The Bank of Canada kept the policy rate at 2.25% as inflation is expected to stay near the 2% target.

History

Historical Context

In response to the 2008 global financial crisis, the Bank of Canada lowered its policy rate to 1.5% to stimulate the economy amid rising inflation, which peaked at 5% in 1989. Today, the Bank maintains a 2.25% rate, reflecting ongoing efforts to manage inflation currently at 2.2%, highlighting the critical role of monetary policy in economic stability and growth.

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Story summary

Canada's inflation rate held at 2.2% in November, unchanged from October, according to Statistics Canada.
Food prices rose 4.2% year over year, while gasoline prices fell 7.8%.
Core inflation measures excluding volatile items dropped below 3% for the first time since March.
The Bank of Canada kept the policy rate at 2.25% as inflation is expected to stay near the 2% target.

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