Text- Selected Tables Related information Previous release PDF (216 KB)
Released:2023-01-17
Annual Average CPI
151.2
2022
6.8%
(annual change)
Source(s): Table 18-10-0005-01.
The Consumer Price Index (CPI) rose6.8% on an annual average basis in2022, following gains of3.4% in2021and of0.7% in2020. The increase in2022was a40-year high, the largest increase since1982(+10.9%). Excluding energy, the annual average CPI rose5.7% in2022compared with2.4% in2021.
Price increases were broad-based in2022, with prices up on an annual average basis in all eight major components. Canadians felt the impact of inflation, as prices for day-to-day basics such as transportation (+10.6%), food (+8.9%) and shelter (+6.9%) rose the most.
Both goods and services prices rose at a faster pace compared with a year earlier. Prices for goods were up8.7% on an annual average basis in2022, led by higher prices for non-durable goods such as food purchased from stores (+9.8%) and gasoline (+28.5%). Prices for services increased5.0% in2022, led by homeowners' replacement cost (+9.5%) and other owned accommodation expenses (+10.0%).
Year-over-year price growth accelerated each month in the first half of the year, reaching a high of8.1% in June, and slowed in the second half of the year.
Chart1
Annual average change in the Consumer Price Index (CPI) and the CPI excluding energy,2008to2022
Chart2
Prices rise in all eight major components
Base-year effects and the Consumer Price Index in2023
In the coming months, the relatively large month-over-month price movements that were observed from January2022to June2022will stop influencing the12-month price movements in2023. The broad increase in prices, led by prices for energy products, in the first half of2022will have a downward impact on the year-over-year rate of consumer inflation through the first half of2023because higher prices from2022will be used as the basis for year-over-year comparisons. For more information on the base-year effect, see the publication Consumer Price Index Fact Check: Measuring inflation during the COVID-19pandemic and beyond.
Users should consider the impact of base-year effects when interpreting the12-month price movements in2023.
Higher energy prices contribute the most to headline inflation
Higher energy prices (+22.5%) contributed to the annual average headline inflation in2022.
Consumers paid28.5% more for gasoline on an annual average basis. Crude oil prices rose as a result of supply uncertainty amid Russia's invasion of Ukraine and higher demand in response to the easing of COVID-19restrictions, pushing prices at the pump higher.
Prices for fuel oil and other fuels rose59.6% on an annual average basis, following a24.4% gain in2021. Atlantic Canadians were most impacted by this increase, as fuel oil is more commonly used for heating homes in Atlantic Canada.
Prices for groceries rise at the fastest pace since1981
Prices for food purchased from stores rose9.8% in2022, the fastest pace since1981(+12.0%), after increasing2.2% in2021. Food inflation was broad-based in2022, with prices increasing on an annual average basis in every food category except for canned salmon (-1.4%).
Among others, higher prices for dairy products (+8.6%), other food preparations (+10.1%), fresh fruit (+10.4%), fresh vegetables (+8.3%), cereal products (+13.6%), and processed meat (+9.6%) contributed to the rise in grocery prices in2022.
The supply of food was impacted by multiple factors, including extreme weather, higher input costs and supply chain disruptions. Russia's invasion of Ukraine created supply uncertainty in the global wheat market, putting upward pressure on prices for bakery products (+11.5%). Both countries are among the top10producers of wheat globally.
Shelter costs rise, led by homeowners' replacement cost
Shelter costs rose6.9% on an annual average basis in2022, led by higher prices for homeowners' replacement cost (+9.5%), which is related to the price of new homes, and other owned accommodation expenses (+10.0%), which includes commissions on the sale of real estate.
While the homeowners' replacement cost and other owned accommodation expenses indexes increased in2022, they rose to a lesser extent than in2021. Year-over-year growth in both indexes remained elevated during the early months of2022but have slowed every month since May, reflecting a general cooling of the housing market.
After declining in2021, the Mortgage Interest Cost Index rose2.6% in2022amid a higher interest rate environment in the latter half of the year.
Similarly, national rent prices increased4.6% in2022, following a1.6% gain in2021. The easing of public health measures in2022, combined with post-secondary schools returning to in-person teaching and rising immigration, have contributed to higher rent prices.
Chart4
Shelter costs rise in2022
Prices for durable goods remain elevated
Annual average prices for durable goods remained elevated, increasing6.2% in2022. Higher prices for passenger vehicles (+7.2%) contributed the most to the increase, partially attributable to the ongoing shortage of semi-conductor chips.
Although annual average prices for furniture (+11.6%) and household appliances (+9.0%) also rose in2022, these indexes began to slow towards the end of the year. The slowdown is attributable to eased supply chain constraints, lower shipping costs and lower demand.
Prices for services rise at a faster pace
Prices for services rose at a faster pace in2022(+5.0%) than in2021(+2.3%), on an annual average basis, as public health measures eased and the economy fully reopened. In addition to shelter services, Canadians paid more for hotel rooms and restaurant meals.
Prices for traveller accommodation increased29.3% on an annual average basis in2022, after rising2.2% in2021. Increases were most notable in Ontario (+42.7%), Nova Scotia (+34.6%) and Quebec (+28.5%), reflecting increased demand for travel within Canada compared with2021, when some COVID-19restrictions were still in place.
In addition, higher annual average prices for food purchased from restaurants (+6.7%) in2022also contributed to the increase in services prices.
Regional highlights
Annual average prices rose in all provinces in2022, but consumers in Prince Edward Island (+8.9%) felt it the most amid higher energy prices, such as fuel oil and other fuels (+68.1%) and gasoline (+34.0%). Manitoba (+7.9%) also recorded a notable increase, mainly driven by higher prices for homeowners' replacement cost (+22.0%).
Chart5
Prices increase at a faster pace in every province
Note to readers
This release examines the percentage change between the annual average Consumer Price Index (CPI) in2021and2022.
Annual average indexes are obtained by calculating the average of the12monthly index values over the calendar year. The annual average percent change should not be confused with the12-month percent change that is published every month with the release of the CPI. Unlike the annual average change, the12-month change compares the monthly index level with the level from the same month a year earlier.
Explore the Consumer Price Index tools
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 to the official measure of inflation for the average Canadian household—the CPI.
Visit the Consumer Price Index portal to find all CPI data, publications, interactive tools, and announcements highlighting new products and upcoming changes to the CPI in one convenient location.
Browse the Consumer Price Index Data Visualization Tool to access current (Latest Snapshot of the CPI) and historical (Price trends:1914to today) CPI data in a customizable visual format.
Find the answers to the most common questions about the CPI in the context of COVID-19and beyond.
COVID-19and the Consumer Price Index
Goods and services in the CPI that were not available to consumers in January and February2022because of COVID-19restrictions received special treatments, effectively removing their impact on the calculation of the monthly and annual average CPI. In March2022and onward, no special treatments for goods and services due to the COVID-19pandemic were required.
The details of the special treatments from April2020to March2021are provided in technical supplements available through the Prices Analytical Series. Details and other treatment information for April2021to March2022are available upon request.
Correction
On January30,2023, select data points were updated to reflect the rounding rules noted above. The interpretation and analysis of the data are unaffected.
Products
The Consumer Price Index Data Visualization Tool is available on the Statistics Canada website.
More information about the concepts and use of the Consumer Price Index is available in The Canadian Consumer Price Index Reference Paper (Catalogue number62-553-X).
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).
