The Consumer Price Index (CPI) rose 2.4% on a year-over-year basis in December, following a 2.2% increase in November, reported Statistics Canada on Monday.
The year-over-year acceleration in the all-items CPI was driven by the temporary Goods and Services Tax (GST)/Harmonized Sales Tax (HST) break that began on December 14, 2024. This resulted in monthly declines for the exempt goods and services, which have now fallen out of the year-over-year movement, putting upward pressure on headline CPI growth, noted the federal agency.
Moderating the acceleration in the headline CPI was a year-over-year decline in prices for gasoline in December. Excluding gasoline, the CPI rose 3.0% in December, following a 2.6% increase in November. It fell 0.2% month over month in December. On a seasonally adjusted monthly basis, the CPI increased 0.3%, said Statistics Canada.
“Year over year, higher restaurant prices were the largest contributor to faster growth in the all-items CPI in December 2025. Prices for food purchased from restaurants rose 8.5% in December, compared with a 3.3% increase in November. Prices for alcoholic beverages served in licensed establishments (+6.5%) and alcoholic beverages purchased from stores (+5.6%) also grew at a faster pace in December,” explained Statistics Canada.
“Prices for toys, games (excluding video games) and hobby supplies rose 7.5% in December, after a 0.5% decline in November. Additionally, prices for children’s clothing accelerated in December (+4.8%) compared with November (+2.4%). Year-over-year price growth also picked up for potato chips and other snack products (+7.9%) and confectionery (+14.2%).”
Despite being unchanged month over month, prices for food purchased from stores rose 5.0% year over year in December. Coffee (+30.8%) and fresh or frozen beef (+16.8%) remained the largest contributors to the increase, it added.
“On a year-over-year basis, prices for gasoline fell 13.8% in December after a 7.8% decline in November. The larger decline was due to prices falling 7.1% month over month in December, following a price increase in November which coincided with various refinery and pipeline disruptions. Crude oil prices have declined to their lowest point in over four years, amid a continued oversupply in global markets, among other factors,” said Statistics Canada.
On Monday the federal agency in another report said CPI rose 2.1% on an annual average basis in 2025, following an increase of 2.4% in 2024. Although this was the smallest annual average increase since 2020, prices remained elevated in 2025, rising 19.9% over the past five years. Excluding energy, the annual average CPI rose 2.6% in 2025, matching the increase in 2024, it said, adding that prices for groceries increased at a faster pace in 2025 (+3.5%) than in 2024 (+2.2%) on an annual average basis.
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