RENNIE OUTLOOK 2025
INFLATION Canada’s rate of consumer price inflation was largely tamed in 2024 as it moderated substantially from the period of high inflation that characterized the previous two years. Not only did it remain below the upper end of the Bank of Canada’s target range of 1-3% for the whole year, but headline inflation was also at or below 2% for the last five months of the year. Inflationary pressures have, for the most part, been conquered in Canada and the risk of consumer-led inflation re-emerging remains low. New uncertainties have emerged, however, with the new U.S. administration looking to implement a slew of policies—many of which are inflationary—including potential tariffs on Canada, which, if implemented, would put upward pressure on prices.
OUR 2025 OUTLOOK
Our baseline expectation for Canada’s inflation rate is to remain within the Bank of Canada’s target range of 1-3% throughout 2025, oscillating around the 2% target. The high end of our estimates suggests inflation could increase outside the Bank’s target range of 1-3% as the year progresses if tariffs, and subsequent retaliatory tariffs, are implemented.
Copyright © 2025 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of January 29, 2025. Data from the Greater Vancouver and Fraser Valley Boards, Statistics Canada, Zonda Urban, CMHC, & rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E. 10
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