In line with recent comments by the Governor of the Bank of Canada, the Consumer Price Index (CPI) rose 8.1% year over year in June, Statistics Canada released on Wednesday morning. In May, it was 7.7%. On a seasonally adjusted monthly basis, the CPI rose 0.6% in June.
Posted at 8:32
Updated at 8:59 am
This is the strongest annual increase since January 1983.
The manager ? Gasoline prices again and again. “Year-over-year, consumers paid 54.6% more for gasoline in June, after paying 48.0% more in May. This price increase contributed the most to overall inflation. says Statistics Canada.
Prices at the pump rose 6.2% month over month in June, following a 12% increase in May.
But the increases remain widespread, seven of the eight main components rose by 3% or more, said the federal agency in its press release. Food increased by 8.8% year on year in June, those purchased in supermarkets by 9.4%.
On a monthly basis, the CPI rose 0.7% in June, after rising 1.4% in May. On a seasonally adjusted monthly basis, the CPI rose 0.6%.
On the net, household purchasing power continues to deteriorate, with prices rising faster than the average hourly wage. This rose 5.2% in the twelve months to June.
Vehicle prices on the rise
The price index for the purchase of passenger vehicles rose 8.2% year over year in June, compared with 6.8% in May. “Demand for motor vehicles continues to outstrip supply due to continued shortages of semiconductor chips, putting upward pressure on prices,” said Statistics Canada.
Service prices remain high
Prices for services rose 5.2% in June. The rise in house prices, however, slowed compared to May. “This slowdown stems primarily from the first month-over-month decline since August 2019 and reflects lower real estate commissions,” it said.
Prices for traveler accommodation and air travel continue to rise at a faster rate.
More details will follow.