Plain meaning
A Statistics Canada measure tracking price changes for a basket of consumer goods and services over time.
Also called
headline inflation
core inflation
CPI
Key points
- The CPI is commonly used to measure consumer inflation in Canada.
- Headline CPI includes the full basket, while core measures try to filter out some volatile movements.
- Many tax brackets, benefits, credits, and public payments are indexed using inflation-related measures.
- The Bank of Canada considers inflation data when setting monetary policy.
- CPI is an average measure and may not match the exact cost experience of every household.
Why it comes up
CPI affects inflation reporting, indexed tax brackets, benefit amounts, interest-rate decisions, and household cost discussions.