This briefing compares annual CPI inflation in Canada and the United States from 1970 through 2025 to examine how inflation regimes have evolved across North America. While inflation trends remained broadly aligned through major economic cycles, the post-pandemic period introduced notable differences, with U.S. inflation peaking above Canadian levels in 2022.
The analysis also highlights the period following Canada’s adoption of inflation targeting in 1991, where inflation averaged near 2% compared with approximately 2.5% in the U.S. The report explores what shifting inflation conditions may mean for portfolio construction and why scenario testing across different inflation environments remains relevant for long-term asset allocation decisions.