Canada’s annualized inflation rate decreased to 2.8% in June as gasoline and other energy prices fell sharply during the month.
Statistics Canada reports that the Consumer Price Index (CPI) increased 2.8% year-over-year in June, down from an annualized 3.2% in May.
The June decline was driven almost entirely by lower prices for gasoline. Excluding gasoline, inflation in Canada was unchanged in June compared with May at 2.2%.
The Consumer Price Index dropped 0.4% month-over-month in June, the largest monthly decline since December 2024.
Gasoline prices at the pump increased at a slower rate on a year-over-year basis in June, rising 20.5% compared with 33.2% growth in May.
While gasoline prices remained elevated due to the war in Iran, they eased considerably in June, leading to a 10.2% month-over-month decline from May.
It was the largest monthly decline in gasoline prices since early 2025, when prices in Canada fell due to the removal of the consumer carbon tax.
Elsewhere, prices for travel accommodation accelerated on a year-over-year basis in June, rising 10.1% due to the start of the World Cup soccer tournament held in parts of Canada.
On a year-over-year basis, the cost of passenger vehicles in Canada increased at a slower rate in June (up 1.9%) compared with May (up 2.5%).
Prices for food purchased from stores grew at a slower pace on a year-over-year basis in June (up 3.9%) compared with May (up 4.3%).
Across Canada, consumer prices rose at a slower pace in June compared with May in every province except Prince Edward Island.
Consumer prices in Ontario rose 2% in June, the smallest increase across the country, due largely to slower price growth for food purchased at restaurants.
