Canadian Consumer Price Index Rises 3.0% Year-Over-Year in July

On Monday, Statistics Canada (StatCan) reported that the Canadian Consumer Price Index (CPI) rose 3.0% year-over-year in July, compared with a 2.8% increase in June.

On a month-over-month basis, the CPI rose 0.5%. Seasonally adjusted, the index rose 0.3%.

Higher gasoline and travel tour prices contributed to the acceleration in the headline CPI. Slower growth in prices for food purchased from stores moderated the increase. The all-items CPI excluding gasoline rose 2.2% year-over-year for the third consecutive month.

Year-over-year, prices rose at a faster pace in every province except Ontario in July compared with June. Ontario inflation held at 2.0%, the lowest among the provinces, as homeowners’ replacement costs fell 4.6% and natural gas prices declined 18.7%.

Nova Scotia recorded the highest provincial inflation rate at 5.0%, driven in part by a 3.3% increase in electricity prices and an 8.7% rise in rent. In New Brunswick, faster price growth was led by electricity prices, up 4.4%, and traveler accommodation, up 4.5%.