- CPI MoM -04% versus -0.2% estimate. Prior month +1.0%
- CPI YoY 2.8% versus 2.9% estimate. Prior month 3.2%
- CPI BOC COre YoY 2.1% versus 2.2% last month
- CPI BoC Core MoM 0.1% versus 0.6% last month
- CPI MOM SA -0.1% vs. 05% last month
- Core CPI MoM SA 0.2% versus 0.2% last month
- CPI median +1.9% versus 2.1% estimate. Prior month 2.1%
- CPI trim 1.8% versus 2.0% estimate. Prior month 2.0%
- CPI common 2.6% versus 2.7% last month
Gasoline prices continued to ease in June, rising at a slower year-over-year pace than in May and helping to drive the moderation in Canada’s headline inflation rate. Prices at the pump increased at a slower rate on a year-over-year basis in June (+20.5%) compared with May (+33.2%). While gasoline prices remained elevated due to the conflict in the Middle East, diplomatic talks and an interim ceasefire arrangement contributed to an easing of global oil prices in June, leading to a 10.2% month-over-month decline.
Excluding gasoline, the Consumer Price Index (CPI) was unchanged from the previous month at 2.2%, underscoring the broader stability in underlying inflation. On a monthly basis, the CPI declined 0.4% in June—the largest monthly drop since December 2024. After seasonal adjustment, prices slipped 0.1%, marking the first monthly decline since April 2025 and signaling that inflationary pressures continued to soften as the second quarter came to a close.
World Cup had an impact on travel related services
The 2026 FIFA World Cup boosted travel-related inflation in June, particularly in host cities such as Toronto and Vancouver. Strong visitor demand pushed traveller accommodation prices up 10.1% year over year, with hotel prices surging 19.4% in Ontario and 20.0% in British Columbia. Increased travel also lifted rental car prices by 6.8%, travel tour prices by 6.8%, and airfares by 9.6%, as higher domestic travel demand and elevated jet fuel costs combined to drive transportation costs higher.
Regionally,
- Inflation slowed in every Canadian province in June compared with May, except in Prince Edward Island.
- Slower gasoline price increases were the primary reason for the nationwide moderation in inflation.
- Internet service prices fell 3.8% year over year, led by lower pricing across most of Western Canada.
- Cellular service prices in Quebec rose 2.6% as promotional pricing ended and new plan prices increased.
- Ontario recorded the lowest annual inflation rate at 2.0%, helped by slower restaurant price increases.
- Nova Scotia had the highest annual inflation rate at 4.7%, driven mainly by higher traveller accommodation costs.
This article was written by Greg Michalowski at investinglive.com.
