CPI print continues to show impact of energy prices
Canada's Consumer Price Index (CPI) rose 2.8 per cent year over year in June, a fall from the 3.2 per cent increase seen in May, according to Statistics Canada. Month over month, CPI fell 0.4 per cent, which represents the largest monthly decline since December of 2024. Seasonally adjusted, that decline was 0.1 per cent.
Prices for gasoline were at the core of the slowdown, as gas prices increased at a slower pace than in May, rising 20.5 per cent compared to May's 33.2 per cent increase. CPI excluding gasoline was unchanged at 2.2 per cent. Elevated gas prices are largely the result of ongoing conflict in the Middle East and uncertainty about transit through the Strait of Hormuz.
Prices for hotels and travel-related services also increased in June, in line with the beginning of the FIFA World Cup, with matches hosted in Toronto and Vancouver. Grocery price increases decelerated in June, rising 3.9 per cent compared to May's 4.3 per cent increase. Grocery price inflation is still above all-item CPI, June marks the 17th consecutive month where that has occured.
