FX.co ★ Canadian Core CPI Eases to 2.8% in December, Signaling Gradual Inflation Relief

In a sign of incremental economic relief, Canada's Core Consumer Price Index (CPI) reported a slight decline to 2.8% in December 2025, registering a year-over-year change that suggests a moderation of inflationary pressures. This comes after the Core CPI had reached 2.9% in November, according to the latest data updated on January 19, 2026.

The December figures reflect a subtle but notable decrease from previous months, suggesting that Canada’s economic measures may be slowly tempering inflation. This modest reduction could indicate that the Bank of Canada's efforts to stabilize prices are beginning to have an effect, potentially easing concerns for Canadian consumers grappling with rising costs over the past year.

The data, illustrating the trend over the last month, provides a hopeful yet cautious outlook for inflation in Canada moving forward, as the nation continues to navigate economic challenges. As comparisons from the same month in the previous year become available, continued monitoring will be critical to understanding if this easing trend will persist into the new year.