Inflation rose 7.6% year on year in July

The inflation rate rose to 7.6% last month in Canada, according to what Statistics Canada reported on Tuesday.

This is down from June, when the Consumer Price Index (CPI) rose 8.1% year over year.

The deceleration was attributed to slower year-over-year growth in gasoline prices, according to Statistics Canada, as without gasoline, prices rose 6.6% year-over-year. another in July, after rising 6.5% in June.

The upward pressure exerted on prices therefore remained widespread.

In fact, the 9.9% year-over-year increase in prices for food purchased from stores in July was higher than the 9.4% observed in June. Prices for bakery products continued to rise at a faster pace on the back of high wheat prices.

Statistics Canada observed that food prices rose in a year last month at the fastest pace since August 1981.

Additionally, as mortgage costs rise with the interest rate hikes decreed by the Bank of Canada, the Statistics Canada survey notes that rental prices are accelerating, rising faster in July than in the month previous.

Gasoline prices jumped 35.6% year over year in July, after rising 54.6% in June. Consumers paid 9.2% less for gasoline last month compared to the previous month, the largest monthly decline since April 2020.

Year over year, price growth in July was lower than in June in eight of Canada’s ten provinces. In Quebec, the Consumer Price Index rose in one year by 7.3% in July, compared to 8% in New Brunswick, 8.7% in Nova Scotia and 9.5% on the Island -of Prince Edward Island.

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