Canada's June Inflation Eases to 2.8% as Gas Prices Drop 10.2%
Updated
Updated · CBC Sports · Jul 20
Canada's June Inflation Eases to 2.8% as Gas Prices Drop 10.2%
3 articles · Updated · CBC Sports · Jul 20
Summary
Canada’s annual inflation rate slowed to 2.8% in June from 3.2% in May, with Statistics Canada tying the pullback mainly to cheaper gasoline.
A 10.2% month-over-month drop in gas prices followed last month’s Middle East ceasefire and diplomatic talks; excluding gasoline, inflation was unchanged from May to June.
Food inflation also cooled to 3.9% from 4.3%, though some staples still rose faster, including chicken at 5.7% and bread, rolls and buns at 6.0%.
Travel costs pushed the other way: accommodation jumped about 20% year over year in Ontario and British Columbia as the World Cup began, while airfares rose 9.6%.
With pump prices climbing again after renewed geopolitical tensions, economists say headline inflation could edge back up even as softer core measures support the Bank of Canada staying at 2.25%.