Inflation falls to 2.7% in June, driven by slower growth in gas prices: StatCan

Canada’s annual inflation rate fell to 2.7 per cent in June, with Statistics Canada largely attributing the deceleration to slower year-over-year growth in gasoline prices.

The agency reported Tuesday that gasoline prices rose 0.4 per cent in June following a 5.6 per cent jump in May. Excluding gasoline, the consumer price index rose 2.8 per cent in June.

StatCan says lower prices for durable goods also contributed to the overall slowdown, falling 1.8 per cent year-over-year in June following a 0.8 per cent decline in May.

Meanwhile, grocery prices rose 2.1 per cent year-over-year in June, up from May when they increased 1.5 per cent from the same month a year earlier.

The annual inflation rate for May was 2.9 per cent.

Today’s inflation reading is the last before the Bank of Canada’s next interest rate decision, set for July 24.

This report by The Canadian Press was first published July 16, 2024.