Canada’s GDP implicit price index, a key gauge of overall price movements in the economy, slowed to 0.70% quarter-over-quarter in the fourth quarter of 2025, down from 0.90% in the third quarter of 2025. The latest figures, updated on 27 February 2026, indicate a moderation in broad-based price pressures compared with the prior three-month period.
On a quarter-over-quarter basis, the current reading reflects a weaker pace of price growth than in the previous quarter, when the index climbed 0.90% compared with the second quarter of 2025. The comparison underscores a gradual easing in the growth rate of prices embedded in Canada’s GDP, suggesting that the overall inflationary backdrop within the economy was less intense at the end of 2025 than it had been in the middle of the year.
The quarter-over-quarter framework used for the indicator shows how price dynamics are evolving from one period to the next: the “actual” figure measures the change in the fourth quarter relative to the third, while the “previous” figure captured the change in the third quarter relative to the second. This sequential cooling will likely be monitored closely by market participants and policymakers as they assess the momentum of price trends going into 2026.
