Inflation cooled to 2.8% in June as gas prices fell, says StatCan
Canada's annual inflation rate cooled to 2.8% in June, largely driven by a decrease in gasoline prices. While grocery price inflation also slowed, travel-related costs surged due to increased demand and major events like the FIFA World Cup.
Why it matters
Inflation data is a critical indicator for economic policy and consumer purchasing power, influencing central bank interest rate decisions.
Consumers paid less for gas at the pump in June compared to May, and that helped cool annual inflation to 2.8 per cent, according to Statistics Canada.
The agency released the latest Consumer Price Index (CPI) Monday, which is the main gauge on inflation for Canadian consumers. The headline inflation figure was down from May’s year-over-year reading of 3.2 per cent.
Gas prices surged over the spring mostly because of conflict in the Middle East , but a tentative peace agreement between the United States and Iran took pressure off global oil prices over the course of June. Renewed hostilities between the nations have pushed prices at the pump higher again in recent weeks.
Taking gas prices out of the equation, Statistics Canada said inflation was unchanged at 2.2 per cent from May to June.
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