The latest Statistics Canada inflation figures show a 2.7% year-over-year reduction in June, down from 2.9% in May.
A slump in the rise of gasoline prices led to the slow down with only a 0.4% increase reported in June compared to a 5.6% rise in May. Excluding gasoline, inflation rose by 2.8% in June.
While inflation in shelter fell from 6.4% to 6.2% between May and June, it remained the highest among product groups in the Consumer Price Index. The lowest inflation was reported for the clothing and footwear category with a -3.1% change year-over-year. The price of gasoline fell by an equal 3.1% month-over-month.
The Consumer Price Index measures price changes in a variety of goods and services purchased by households.
June’s version of the Consumer Price Index tracks the inflation of groceries back to Jan. 2023, when the inflation for groceries stood at 11.4%. The Consumer Price Index of groceries fell almost every month since then, reaching a low of 1.4% in Apr. 2024. Grocery inflation has risen for two consecutive months, reaching 2.1% year-over-year.
On a monthly basis, the Consumer Price Index fell 0.1% in June, following a 0.6% increase in May. The decrease was led by a price decrease for travel tours of 11.1%, while gasoline fell 3.1%. When seasonally adjusted, the Consumer Price Index rose 0.1% in June.
The carbon tax’s impact on inflation remained evident in this month’s regional data. Two provinces that removed carbon and fuel tax remain on one end of the spectrum, while the other provinces remain generally grouped on the other side.
Saskatchewan and Manitoba remained with the country’s lowest inflation between June 2023 and 2024, at 1.4% each. The next lowest province was Quebec, where inflation grew by 2.2%. The province with the highest Consumer Price Index, measuring a year-over-year change between June 2023 and 2024, was Nova Scotia, at 3.5%.
Between May and June 2024, Quebec fell from a Consumer Price Index of 3.1% to 2.2%.
“Lower prices for traveller accommodation (-20.2%) contributed to the slowdown in Quebec, stemming from a base-year effect,” reads the report.
In May, the closest province to Manitoba and Saskatchewan had a Consumer Price Index of 2.6%.
A recent survey revealed that 57% of Canadian households have seen their income outpaced by inflation, while 38% anticipate higher payments for bills and loans in the next three months.