US vs Canada Inflation Tracker: Today’s CPI and Inflation Rate
Track U.S. and Canadian inflation • Real-time CPI data from official sources
Last updated August 1, 2026 — latest BLS (US) and Statistics Canada CPI release
US vs Canada inflation at a glance
United States
CPI for August 2026
- Headline CPI (year over year)
- 3.4%
- Core CPI (year over year)
- 2.4%
- Fed funds rate
- 3.8%
Canada
CPI for August 2026
- Headline CPI (year over year)
- 3.0%
- Core CPI (year over year)
- 1.9%
- Bank of Canada policy rate
- 2.3%
US headline inflation is running 0.4 percentage points above Canada’s.
Track real-time Consumer Price Index (CPI) data for the US and Canada. Monitor headline and core inflation trends, compare historical rates, and calculate how inflation affects your purchasing power over time. Data sourced from the Bureau of Labor Statistics and Statistics Canada.
Core CPI (excluding food and energy) is what central banks focus on for policy decisions. If headline CPI is rising but core is stable, the inflation may be transitory. Watch both to understand the full picture.
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💡 Key Inflation Insights
Headline vs Core CPI
Headline CPI includes all items, while Core CPI excludes volatile food and energy prices. Core CPI gives a clearer picture of underlying inflation trends and is closely watched by central banks.
Impact on Investments
High inflation typically leads to higher interest rates, which can hurt bonds and growth stocks but benefit banks and value stocks. Real assets like real estate and commodities often serve as inflation hedges.
The 2% Target
Both the Federal Reserve and Bank of Canada target 2% annual inflation. This level is considered optimal for economic growth—high enough to encourage spending but low enough to maintain price stability.
Real vs Nominal Returns
Your real return = nominal return − inflation. If your investment earns 7% but inflation is 3%, your real return is only 4%. Always consider inflation when evaluating investment performance.
💰 Purchasing Power Calculator
See how inflation has affected the value of money over time. Enter an amount and select years to compare.
$0.00 in 1980 equals
—
in 2026 dollars
Total Inflation
+299.00%
Avg. Annual
3.05%
💡 What this means: If you had $0.00 in 1980, you would need $0.00 today to have the same buying power. Your money has lost NaN% of its purchasing power.
Source: U.S. Bureau of Labor Statistics (CPI-U)
📌 Quick Examples
Note: US calculations use BLS CPI-U annual averages; Canada calculations use Statistics Canada All-items CPI (Table 18-10-0005-01). Actual purchasing-power changes vary by location and spending habits — the CPI measures average price changes and may not reflect your personal inflation rate.
How the Consumer Price Index Is Calculated · How Inflation Affects Different Asset Classes · Central Bank Policy and Inflation Targets · TIPS, I-Bonds, and Inflation-Protected Investments
Read the full guide →Facts last reviewed:
Canada’s headline inflation rate is 3.0% year over year, based on the Consumer Price Index for August 2026 published by Statistics Canada. Core inflation (excluding food and energy) is 1.9%. The Bank of Canada targets 2% and its policy rate is 2.3%.
The US inflation rate is 3.4% year over year, measured by the Consumer Price Index for August 2026 from the Bureau of Labor Statistics. Core CPI is 2.4% and the federal funds rate is 3.8%. The Federal Reserve also targets 2% inflation.
Right now the US headline CPI is 3.4% and Canada’s is 3.0%, a gap of 0.4 percentage points. Both central banks target 2%, but the mix differs: shelter and services drive US inflation, while Canadian CPI is more sensitive to energy, the exchange rate and mortgage interest costs. Switch the country toggle above to compare the full history.
The Consumer Price Index (CPI) measures the average change in prices paid by households for a fixed basket of goods and services — shelter, food, transportation, energy, clothing and more. The inflation rate is the percentage change in CPI over 12 months. Headline CPI includes everything; core CPI strips out volatile food and energy to show the underlying trend.
Facts last reviewed:
The current US inflation rate is updated monthly based on the Consumer Price Index (CPI) from the Bureau of Labor Statistics. Our tracker shows both headline CPI (all items) and core CPI (excluding food and energy) for a complete picture of price trends.
Inflation erodes purchasing power over time. For example, $100 in 1980 has the same buying power as about $380 today. Use our purchasing power calculator to see how much your money has lost in value over any time period.
Headline inflation includes all items including volatile food and energy prices. Core inflation excludes these volatile components, giving a clearer picture of underlying inflation trends. Central banks often focus on core inflation for policy decisions.
A 2% inflation target is considered optimal for economic growth. It's high enough to encourage spending and investment (avoiding deflation), but low enough to maintain price stability and protect purchasing power. Both central banks adjust interest rates to achieve this target.
Treasury Inflation-Protected Securities (TIPS) are US government bonds whose principal adjusts with CPI. If inflation rises 3%, your principal increases by 3%. At maturity, you receive the greater of the adjusted or original principal. The breakeven rate (nominal yield minus TIPS yield) shows the market's inflation expectation.
Rising inflation hurts fixed-income investments the most, as fixed coupon payments lose purchasing power. Equities with strong pricing power can pass inflation through to consumers. Real assets like real estate and commodities tend to hold value. TIPS and I-Bonds provide direct government-backed inflation protection.
Facts last reviewed:
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