Inflation Rate 2025 Canada Forecast. After two years of relentless interest rate hikes, the bank of canada has delivered two rate cuts so far this year, lowering the policy rate to 4.5%. The outlook for inflation in 2026 is roughly unchanged.
From the business outlook survey conducted by the bank of canada’s regional offices, the firms’ expectation for the annual rate of inflation, based on the consumer price index, over the next. After a period of high inflation, headline and core consumer price inflation are expected to stabilize around the 2% target over the medium term.