Statistics Canada released two reports on inflation Monday morning, one detailing inflation for December and the other for all of 2025.
In December, inflation rose 0.2 percentage points from November to 2.4 per cent. Two factors impacted the monthly Consumer Price Index. First, the GST holiday that started in mid-December 2024 put upward pressure on the index, while a drop in gas prices put downward pressure on it.
As a result of the comparison to December 2024, the index showed prices rose for toys, games, video games, and hobby supplies by 7.5 per cent. Children's clothing rose 4.8 per cent after a 2.4 per cent increase in November, and snacks like potato chips rose 7.9 per cent. The price of confectionery also rose 14.2 per cent compared to a year ago.
Gas prices dropped 13.8 per cent year over year compared to November's 7.8 per cent drop. Month over month, disruptions at oil refineries and pipelines increased the cost of filling up at the gas station by 7.1 per cent. Crude prices are also at their lowest level in four years because of a global oversupply.
Without gasoline, December's inflationary rate was 3 per cent, compared to 2.6 per cent in November.
A 30.8 per cent jump in the price of coffee and a 16.8 per cent increase in the cost of fresh or frozen beef helped push groceries up 5 per cent.
Food bought at restaurants climbed 8.5 per cent last month compared to a 3.3 per cent increase in November. Alcoholic drinks bought in licensed establishments rose 6.5 per cent. Alcohol bought at stores climbed 5.6 per cent.
Annually, the Consumer Price Index rose 2.1 per cent for all of 2025 compared to 2024's 2.4 per cent.
Over the past five years, Statistics Canada said overall prices have climbed 19.9 per cent.
Groceries in the past year rose 3.5 per cent, while in 2024 the acceleration in food prices was 2.2 per cent on an annualized basis. Low cattle inventories in North America drove fresh or frozen beef prices up 13.5 per cent, and an ongoing citrus greening disease outbreak in the U.S. pushed the price of oranges up 10.4 per cent.
After falling 3.6 per cent in 2024, food purchased at restaurants rose 2.6 per cent in 2025.
The cost of energy last year dipped 5.7 per cent. Gas was the largest contributor to the decrease as it fell 8.6 per cent in 2025, in part because of the removal of the consumer carbon price in April. After falling by 7.4 per cent in 2024, natural gas cost 8.4 per cent less.
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Shelter costs increased by 3 per cent after a 5.7 per cent increase in 2024. Mortgage interest costs slowed to 5.3 per cent after jumping by 20.1 per cent the year before, while rent rose by 5 per cent.
Across G7 nations, inflation rose in the U.S. by 2.7 per cent in December, by 3.2 per cent in the United Kingdom, by 0.8 per cent in France, and by 1.8 per cent in Germany. Italy's December inflation rate was 1.2 per cent, and 2.3 per cent in Japan.
