OTTAWA — Canada’s annual inflation rate decreased to 2.7% in June, with Statistics Canada attributing the decline mainly to slower year-over-year growth in gasoline prices.
Gasoline Prices Impact
Statistics Canada reported on Tuesday that gasoline prices rose by 0.4% in June, a significant decrease from the 5.6% increase observed in May. When gasoline is excluded, the consumer price index saw a 2.8% rise in June.
Durable Goods Prices
Lower prices for durable goods also played a role in the overall slowdown. Prices for these goods fell by 1.8% year-over-year in June, following a 0.8% decline in May.
Grocery Prices
Conversely, grocery prices increased by 2.1% year-over-year in June, up from a 1.5% rise in May when compared to the same month a year earlier.
Annual Inflation Rate
The annual inflation rate for May was recorded at 2.9%. Today’s inflation reading is significant as it precedes the Bank of Canada’s next interest rate decision, scheduled for July 24.
Conclusion
The latest data from Statistics Canada indicates a slowdown in the overall inflation rate, influenced by various factors such as gasoline and durable goods prices. This trend will be closely monitored by the Bank of Canada as it prepares for its upcoming interest rate decision.
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