On an annual average basis, the Consumer Price Index (CPI) rose 2.4% in 2024, down from 3.9% in 2023. Excluding energy, the annual average CPI rose 2.6% in 2024 compared with 4.5% in 2023, reported Statistics Canada on Tuesday.
“Excluding the period of higher inflation experienced during the COVID-19 pandemic, from 2021 to 2023, the 2024 annual average represented the highest increase since 2011 (+2.9%). Though the average in 2024 was the lowest it had been since 2020, a year heavily impacted by the pandemic, it remained higher than pre-pandemic annual averages, indicating that the return to historical inflation rates has been slow, yet steady. Cumulatively, since the onset of the pandemic, higher annual inflation rates reflect sustained, elevated prices,” said the federal agency.
The rate of price growth for goods and services had distinct trends in 2024. Price growth for goods eased significantly, whereas service inflation was more persistent, said the report.
“Growth of prices for goods slowed in 2024, rising 0.3% compared with 3.2% one year earlier. Prices for non-durable goods decelerated, increasing 1.3% in 2024 after reaching 4.0% in 2023. Decelerations of growth for other food products and non-alcoholic beverages (+3.0%), bakery and cereal products (+0.9%) and fruit, fruit preparations and nuts (+0.8%) contributed to the smaller increase in 2024,” explained StatsCan.
“Durable goods prices fell 0.9% on an annual average basis in 2024, with notable price declines occurring for purchase of passenger vehicles (-0.2%), household equipment (-1.2%) and purchase of digital media (-7.6%).
“On an annual average basis, prices for services increased 4.1% in 2024 compared with 4.6% in 2023. A decline in prices for travel services (-1.1%) contributed the most to the deceleration of growth in 2024, alongside smaller price increases for homeowners’ maintenance and repairs (+1.8%) and food purchased from table-service restaurants (+3.3%).”
While prices for groceries remained elevated, price growth for food purchased from stores was lower in 2024 (+2.2%) compared with 2023 (+7.8%). Notably, prices for virtually all food indexes grew at a slower pace or declined in 2024. At the same time, the other edible fats and oils index (+13.3%) grew at the fastest pace—which was a deceleration when compared with 2023 (+17.1%)—while oranges had the largest decline (-7.9%), noted Statistics Canada.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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