Canada Inflation Rate MoM: January 2026 Data Shows Flat Price Growth
Big-Picture Snapshot
- January 2026 MoM inflation: 0.0%
- December 2025: -0.2%
- November 2025: 0.1%
- 12-month average: 0.08%
- Consensus estimate: 0.2%
- Bank of Canada target: 2% YoY (not MoM)
Drivers This Month
- Shelter: +0.05pp
- Food: +0.03pp
- Gasoline: -0.04pp
- Clothing: -0.02pp
Policy Pulse
January's flat reading keeps inflation well below the Bank of Canada's 2% YoY target. The MoM figure signals little immediate pressure for policy adjustment.
Market Lens
Canadian government bond yields were unchanged after the release. The lack of price momentum and alignment with consensus kept market volatility low, with traders awaiting further data for directional cues.
Foundational Indicators
- MoM inflation: 0.0% (Jan 2026)
- Previous: -0.2% (Dec 2025)
- Two months prior: 0.1% (Nov 2025)
- Three months prior: 0.2% (Oct 2025)
- YoY inflation (Dec 2025): 2.1% [1]
- 12-month MoM average: 0.08%
Drivers This Month
- Energy prices: flat
- Core goods: -0.01pp
- Services: +0.02pp
Policy Pulse
With monthly inflation at zero, the Bank of Canada faces little pressure to tighten or ease policy. The YoY rate remains near target, reinforcing a wait-and-see stance.
Market Lens
Equity markets showed little movement post-release. Investors interpreted the data as a sign of stable price conditions, reducing the likelihood of abrupt monetary policy shifts.
Chart Dynamics
What This Chart Tells Us: The chart underscores a cooling trend in Canadian monthly inflation, with the latest reading flat and well below the 12-month average. This directional shift signals that price pressures have eased, reducing the risk of near-term acceleration.
Forward Outlook
- Bullish scenario (20–30%): MoM inflation rebounds to 0.1–0.2% if energy or food prices rise.
- Base scenario (60–70%): MoM readings remain near zero as core components stay stable.
- Bearish scenario (10–15%): Negative MoM prints return if consumer demand weakens further.
Upside risks include supply chain disruptions or commodity price spikes. Downside risks center on softening consumer spending and global economic headwinds. Data sourced from Statistics Canada and Sigmanomics [1]. The methodology follows official CPI basket weights and seasonally adjusted calculations.
Closing Thoughts
Canada's January 2026 inflation data confirms a period of subdued price growth. The flat MoM print, following December's decline, points to a stable environment for policymakers and markets. With the 12-month average at 0.08%, inflation momentum remains contained, and the risk of a sharp acceleration appears limited for now.
Key Markets Reacting to Inflation Rate MoM
Canada's flat inflation print for January 2026 prompted muted responses across major asset classes. Fixed income, equities, and forex markets all reflected the lack of surprise in the data. The following symbols, verified from Sigmanomics, illustrate the cross-market impact:
- AAPL: Canadian inflation stability reduces input cost volatility for global tech supply chains.
- USDCAD: The currency pair saw little movement as inflation matched expectations.
- BTCUSD: Crypto markets remained steady, with no inflation-driven flows into digital assets.
| Month | Inflation Rate MoM (%) | USDCAD Close |
|---|---|---|
| Jan 2026 | 0.0 | Stable |
| Dec 2025 | -0.2 | Minor uptick |
| Nov 2025 | 0.1 | Flat |
| Oct 2025 | 0.2 | Weaker CAD |
Since 2020, USDCAD has shown limited sensitivity to monthly inflation prints below 0.2%, with larger moves only on significant surprises.
Frequently Asked Questions
- What is the latest reading for Canada's Inflation Rate MoM?
- Canada's monthly inflation rate for January 2026 was 0.0%, indicating no change in consumer prices compared to December 2025.
- How does the January 2026 inflation data compare to recent trends?
- The January reading is flat, following a -0.2% print in December and a 0.1% increase in November, reflecting subdued price momentum.
- Why is the Inflation Rate MoM important for markets?
- Monthly inflation data provides timely insight into price trends, influencing policy expectations and asset prices across sectors.
Canada's inflation momentum remains contained, with January's flat reading reinforcing a stable price environment.
Updated 2/17/26
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
- [1] Statistics Canada, Consumer Price Index, January 2026; Sigmanomics Economic Database, accessed 2/17/26.









January's 0.0% MoM inflation print marks a stabilization from December's -0.2% and is below the 12-month average of 0.08%. The last time monthly inflation was this subdued was in April 2025, when the rate also registered 0.0%.
Over the past six months, monthly inflation has ranged from -0.2% to 0.2%. The trend shows a clear deceleration from the 0.2% peak in October 2025, with three of the last four months at or below 0.1%.