Inflation Rate Trends and Forecast for Canada from 1990 to 2029

Canada's inflation peaked at 5.6% in 1991 as a result of high interest rates aimed at curbing economic overheating. By 1994, inflation had dropped to a low of 0.2%, demonstrating the effectiveness of inflation-targeting policies. During the global financial crisis of 2009, inflation fell to 0.3% as demand plummeted.

Inflation rose to 6.8% in 2022 due to pandemic-related supply chain disruptions and energy price shocks. Projections indicate inflation will stabilize at around 1.9-2.0% by 2029, consistent with the Bank of Canada’s inflation target.