Inflation in Canada slowed to 2.8% year on year in June

The consumer price index (CPI) rose 2.8% year over year in June, which was a slowdown in inflation, as the CPI rose 3.4% in May.

Still, Statistics Canada says grocery store prices rose 9.1% year-over-year last month while mortgage interest costs jumped 30.1% in the meantime. %. It is the rise in these two indexes that contributed the most to the increase in the overall CPI.

In the grocery food component, the largest increases were 12.9% for baked goods, 10.4% for fresh fruit, 10.2% for miscellaneous food preparations, 7.4% for dairy products and 6.9% for meat.

Gasoline prices fell 21.6% year over year in June, after falling 18.3% in May.

As for the prices of motor vehicles, they increased in one year by 2.4% last month, that is to say at a slower pace than that of 3.2% in May.

In its Monetary Policy Report released last week, the Bank of Canada predicted that inflation should hover around 3% for the coming year and then gradually decline to 2% by mid-2025. However, the Governing Council added that it was concerned that progress towards the 2% target could stagnate, which would jeopardize the restoration of price stability.

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