Canada’s inflation rate eased to 2.8 per cent in June as gas prices decelerated during the month, Statistics Canada data showed.
This comes after gas helped pull the inflation rate higher in May to 3.2 per cent. The month-over-month decline from May to June was the largest monthly decline since December 2024, according to the data agency.
Higher oil prices due to the war between the U.S. and Iran have sent the cost of gas up in recent months. The ceasefire and diplomatic talks last month helped ease oil prices, leading to a 10.2 per cent decline in those costs month over month.
Since then, tensions have risen after the memorandum of understanding between the countries collapsed, and pump prices have climbed again as a result.
Prices at Canadian pumps rising again as oil climbs to 4-week highs
StatsCan says inflation was unchanged from May to June when gas prices are taken out of the equation.
Price hikes at the grocery store also eased to 3.9 per cent in June, down from 4.3 per cent in May.
Costs for fresh fruit grew at a slower pace, according to the data agency, especially for grapes. Grocery prices for some items were higher — like fresh or frozen chicken, which rose by 5.7 per cent, and bread, rolls and buns, which were up six per cent.
More to come
