Canada's CPI peaked at 8.1% in June 2022 — a 40-year high — driven by pandemic supply disruptions, commodity prices, and shelter costs. The Bank of Canada's aggressive rate hikes brought inflation down significantly, but the price level remains elevated and grocery prices are still a major political issue.
Canadian inflation in context (2026)
What's still elevated in Canada
- Shelter costs (rent and imputed rent) — still the largest upward contributor to CPI
- Grocery prices — significantly above pre-2022 levels
- Insurance premiums — home and auto insurance rising 10-20% annually
- Restaurant prices — wage inflation passed through to menu prices
How to protect your money from Canadian inflation
| Option | Inflation protection | Notes |
|---|---|---|
| TFSA HISA (EQ Bank, Wealthsimple) | Beats 2.5% CPI at 4-5% | Tax-free interest makes it very efficient |
| TFSA with XEQT/VEQT | Historically beats inflation 10yr+ | Best long-term inflation hedge |
| Real Return Bonds (via ETF XRB) | Principal indexed to CPI | Lower return but direct inflation link |
| Canadian REITs (via ETF XRE) | Property rents often inflation-linked | Volatile but inflation-correlated |
| Cash in big bank account | Loses to inflation | Move to TFSA HISA immediately |
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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