BMO Says There's Still Pain in Canada's Good January CPI Print

11:16 AM EST, 02/18/2026 (MT Newswires) -- Tuesday's consumer price index report showed further signs that inflation is getting back to around the Bank of Canada's 2% target, said Bank of Montreal (BMO).

This is good news, but it still might not feel good to many Canadians, noted the bank.

Going back a decade, the broad CPI basket has seen prices rise by 30%. But some of the essentials have been the most serious pain points into, during and after the COVID-19 pandemic era, stated BMO.

Rents, while cooling now, are still up 40% over that period. Groceries have surged 36%, and gasoline, also well off its highs, is still up more than 40%.

At the other end of the spectrum, Canadians have benefited from lower child-care costs due to government subsidies, lower telecom fees and cheaper recreational equipment.

So, two reasons why these good inflation numbers may not feel so good: stabilizing inflation doesn't help the actual price level, added the bank. The level jump in recent years has been concentrated in areas that are effectively essential for most.

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