Consumer Price Index, February 2025
Released: 2025-03-18
The Consumer Price Index (CPI) rose 2.6% year over year in February, following an increase of 1.9% in January.
While faster price growth was broad-based in February, the end of the goods and services tax (GST)/harmonized sales tax (HST) break partway through the month contributed notable upward pressure to prices for eligible products. Slower price growth for gasoline prices (+5.1%) moderated the all-items CPI acceleration.
On a monthly basis, the CPI rose 1.1% in February. On a seasonally adjusted monthly basis, the CPI rose 0.7%.
Chart 1
12-month change in the Consumer Price Index (CPI) and the CPI excluding food
Explore the Consumer Price Index tools
Check out Statistics Canada's Food Price Data Hub, which features a variety of food price related statistics, articles and tools.
Statistics Canada has released an infographic, "Shrinking products, rising prices: Food-specific quantity adjustments in the Consumer Price Index." This infographic looks at the frequency of shrinkflation occurring in the Consumer Price Index (CPI), specifically in the food component from 2021 to 2023. "Shrinkflation" refers to the practice of selling a smaller quantity of a product at the same price as the previously offered larger size.
Check out the Personal Inflation Calculator. This interactive calculator allows you to enter dollar amounts in the common expense categories to produce a personalized inflation rate, which you can compare with the official measure of inflation for the average Canadian household—the CPI.
Browse the Consumer Price Index Data Visualization Tool to access current (Latest Snapshot of the CPI) and historical (Price trends: 1914 to today) CPI data in a customizable visual format.
Chart 2
Upward price pressure from six major components in February
End of the GST/HST break puts upward pressure on prices
With the federal tax break ending on February 15, the GST and HST were reapplied to eligible products. This put upward pressure on consumer prices for those items, as taxes paid by consumers are included in the CPI.
As a result, prices for food purchased from restaurants declined at a slower pace year over year in February (-1.4%) compared with January (-5.1%). Restaurant food prices contributed the most to the acceleration in the all-items CPI in February.
Similarly, on a yearly basis, alcoholic beverages purchased from stores declined 1.4% in February, following a 3.6% decline in January.
Chart 3
Slower declines for some products in February due to end of the tax break
GST/HST break
The prices included in the Consumer Price Index (CPI) are final, inclusive of all excise and other taxes paid by consumers. For example, prices include the goods and services tax (GST), provincial sales taxes (PST) or harmonized sales taxes (HST), as well as any environmental, liquor and tobacco taxes if applicable. This means that the CPI is affected by changes in any of these taxes.
Ahead of the tax break, a review of all representative products within the CPI was conducted to apply changes to tax patterns starting December 14, 2024. Approximately 10% of the all-items CPI basket was affected by the tax exemption.
Prices in provinces with HST were impacted more by the tax break. Conversely, prices in provinces where federal and provincial sales taxes are not combined were less impacted, as PST was not included in the tax break.
The impact of the GST/HST break continued during the month, affecting prices until February 15, 2025.
Canadians pay higher prices for travel tours
Prices for travel tours rose 18.8% on a year-over-year basis in February compared with an 8.3% increase in January. This reflected increased demand in the United States during the President's Day weekend. On a monthly basis, prices for travel tours rose 23.2% in February.
Prices at the pump rise at a slower pace year over year due to base-year effect
On a year-over-year basis, gasoline prices decelerated, with a 5.1% increase in February following an 8.6% gain in January. Prices rose less month over month in February 2025 compared with February 2024, when higher global crude oil prices pushed up gasoline prices, leading to slower year-over-year price growth in February 2025.
Month over month, prices for gasoline rose 0.6% in February. This increase was largely related to higher refining costs amid planned refinery maintenance across North America. This offset lower crude oil prices, which were largely a result of increased American supply and tariff threats, which contributed to concerns of slowing global growth.
Chart 4
Smaller month-over-month increase in gasoline prices in February 2025 compared with February 2024
Focus on Canada and the United States
Tariffs affect many facets of the economy, including inflation. The imposition of tariffs by the United States and/or countermeasure tariffs by the Canadian government will have an impact on prices paid by Canadian consumers in the coming months. Read more about the potential impacts of US tariffs on the Bank of Canada's website.
No special adjustments will be required to the Consumer Price Index for tariffs, as their effect is embedded in the final prices collected.
Statistics Canada will continue to monitor developments on tariffs and the impact on consumer price inflation.
Regional highlights
On a yearly basis, prices rose at a faster pace in all provinces in February compared with January, with the largest accelerations being in New Brunswick and Ontario.
Chart 5
The Consumer Price Index rises at a faster pace in all provinces
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Note to readers
Visit the Consumer Price Index portal to find all Consumer Price Index (CPI) data, publications, interactive tools and announcements highlighting new products and upcoming changes to the CPI in one convenient location.
Upcoming enhancements: Methodology for estimating the passenger vehicle and homeowners' home insurance price indexes
With the release of the April CPI on May 20, Statistics Canada will introduce an enhanced methodology for calculating the passenger vehicle and homeowners' home insurance price indexes.
A technical paper describing the approach will be available on April 15.
Real-time data tables
Real-time data table 18-10-0259-01 will be updated on March 31. For more information, consult the document, "Real-time data tables."
Next release
The Consumer Price Index for March will be released on April 15.
Products
The "Consumer Price Index Data Visualization Tool" is available on the Statistics Canada website.
More information on the concepts and use of the Consumer Price Index (CPI) is available in The Canadian Consumer Price Index Reference Paper (62-553-X).
For information on the history of the CPI in Canada, consult the publication Exploring the first century of Canada's Consumer Price Index (62-604-X).
Two videos, "An Overview of Canada's Consumer Price Index (CPI)" and "The Consumer Price Index (CPI) and Your Experience of Price Change," are available on Statistics Canada's YouTube channel.
The podcast ''Eh Sayers Episode 18 - Why Food Inflation Is Such A Hard Nut To Crack'' is also available.
Find out answers to the most common questions posed about the CPI in the context of the COVID-19 pandemic and beyond.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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