Canada Pension Plan amounts and the Consumer price index
Canada Pension Plan (CPP) benefit increases are calculated once a year using the Consumer Price Index (CPI) All-Items Index. The new amounts come into effect each January. These increases are legislated under the Canada Pension Plan so that benefits keep up with the cost of living.
Latest payment adjustment - January to December 2026
Based on changes in the CPI, CPP benefits paid in 2025 increased by 2.0% for 2026.
Annual adjustment calculations
CPP amounts are adjusted once a year in January. The adjustment is the percentage change from one 12-month period to the previous 12-month period.
Calculation of the January to December 2026 adjustment
The calculation of the January to December 2026 adjustment is based on the change in the average CPI between the 2 following periods:
- from November 2024 to October 2025, and
- from November 2023 to October 2024
The average CPI for the period from November 2024 to October 2025 is 163.6.
The average CPI for the period from November 2023 to October 2024 is 160.4.
The CPI increased by 2.0% between these 2 periods. As a result, CPP benefit amounts increased by 2.0%.
| Most recent 12-month period at the time of calculation | CPI | Previous 12-month period | CPI |
|---|---|---|---|
| November 2024 | 161.8 | November 2023 | 158.8 |
| December 2024 | 161.2 | December 2023 | 158.3 |
| January 2025 | 161.3 | January 2024 | 158.3 |
| February 2025 | 163.0 | February 2024 | 158.8 |
| March 2025 | 163.5 | March 2024 | 159.8 |
| April 2025 | 163.4 | April 2024 | 160.6 |
| May 2025 | 164.3 | May 2024 | 161.5 |
| June 2025 | 164.4 | June 2024 | 161.4 |
| July 2025 | 164.9 | July 2024 | 162.1 |
| August 2025 | 164.8 | August 2024 | 161.8 |
| September 2025 | 164.9 | September 2024 | 161.1 |
| October 2025 | 165.3 | October 2024 | 161.8 |
| The average for the 12-month period | 163.6 | The average for the 12-month period | 160.4 |
If the cost of living decreased over the 12-month period, the calculation of the percentage increase would produce a negative amount. However, as prescribed under the Canada Pension Plan, if there is a decrease in the cost of living, benefit amounts do not decrease. Rather, benefits remain at the same level until the CPI increases again.