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Canada’s inflation ticked up to 2.4% in December 2025—higher than most folks expected. Eating out got pricier (restaurant food up 8.5%), groceries like coffee, beef, chips, and candy cost more, and even toys and kids’ clothes jumped. Gas prices actually dropped a lot, which helped keep things from feeling worse.
The part that matters most? The Bank of Canada’s favorite “core” measures (the ones that strip out the noisy stuff) are heading in the right direction, cooling down nicely. That suggests the underlying pressure isn’t building.
For most of us, it means your grocery and restaurant bills are still climbing, but the trend isn’t getting out of hand (yet). Bank of Canada probably won’t rush to cut rates, but it’s not the panic button moment some headlines make it sound like.
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