(Ottawa) The inflation rate measured by the consumer price index in Canada stood at 2.8% in June, still down from the rate of 3.4% measured in May.
According to Statistics Canada, while the slowdown in inflation was fairly widespread, it was once again the drop in gas prices that contributed the most to this slowdown.
Excluding gas prices, the overall inflation rate in Canada in June would have been 4%, down slightly from the rate of 4.4% measured in May.
On the other hand, grocery price inflation, still very high at 9.1%, and the sharp rise in mortgage interest costs contributed the most to overall inflation in the Canadian economy in June.
In its interest rate hike statement last week, the Bank of Canada said it expected the inflation rate to hover around 3% over the next year, before declining to the 2% target by mid-2025.
Tenacious inflation in grocery stores
Grocery inflation rate in June: 9.1% (three times higher than general inflation at 2.8%)
By food categories:
- Baked goods: 12.9%
- Fresh fruit: 10.4%
- Prepared foods: 10.2%
- Dairy products: 7.4%
- Meat: 6.9%
Source: Statistics Canada