Canada’s inflation rate continues to slow, according to new figures released by Statistics Canada.
The Consumer Price Index (CPI) rose 2.8 per cent year over year in June. That was down from the 3.4 per cent increase the country saw in May.
“While deceleration was fairly broad-based, another base-year effect in gasoline prices led the slowdown in the CPI,” StatCan said in its monthly report released Tuesday.
Gasoline prices fell 21.6 per cent year over year in June following an 18.3 per cent decline in May. One year earlier, in June 2022, we saw elevated prices amid higher global demand for crude oil.
When you take gasoline prices out of the equation, headline inflation would have been four per cent in June, following a 4.4 per cent increase in May.
Despite the overall slowdown in inflation, price increases for some products continue to soar much higher.
Grocery prices were up 9.1 per cent year over year in June, compared to a nine per cent increase in May.
StatCan said the largest contributors were meat, bakery products, dairy products and other food preparations.
Fresh fruit prices grew at a faster year-over-year pace, which the agency said was driven in part by a 30 per cent month-over-month increase in the price of grapes.
Food purchased from restaurants was up 6.6 per cent year over year in June, down from 6.8 per cent in May.
Mortgage interest costs also contributed significantly to the headline CPI increase, increasing 30.1 per cent year over year.
Passenger vehicle prices rose at a slower pace in June, up 2.4 per cent, amid improved supply chains and inventories compared with a year ago.
Regional inflation numbers
Prices rose at a slower pace in June compared with May in eight provinces, with Prince Edward Island recording the lowest year-over-year increase at 0.2 per cent.
StatCan said it was largely due to the largest decline in energy prices in the country at 24.1 per cent.
Quebec (3.6 per cent), British Columbia (3.5 per cent), Saskatchewan (3.3 per cent) and Ontario (2.6 per cent) had the highest rates of inflation.
That was followed by New Brunswick (2.1 per cent), Manitoba (2.1 per cent), Alberta (1.9 per cent), Nova Scotia (1.9 per cent) and Newfoundland and Labrador (1.7 per cent).
You can view the full report by clicking here.
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