Latest data from Statistics Canada shows consumer prices rose 0.1% month-over-month to an annualized 2.8% in June, marking a substantial decline from May’s 3.4% reading and below economists’ forecasts calling for a CPI print of 3%. Still, much like last month, most of the decline was due to base-year effects of lower gasoline prices, while grocery prices and record-high mortgage interest costs continue to put upward pressure on overall inflation.
Aside from the gasoline component, inflation stood at 4% year-over-year in June, after rising 4.4% in May. The price of gasoline was down 21.6% compared to June 2022, when demand for crude oil rose in unison of China reopening its economy from Covid-19 lockdowns.
Grocery prices, meanwhile, rose by an annualized 9.1% in June, after rising 9% in May. Leaving the grocery component out of the equation, last month’s CPI stood at 1.7%. As was the story in May, mortgage interest costs continued rising, and are up a staggering 30.1% over the past 12 months. Excluding this index, the all-items CPI increased 2%.
Information for this story was found via Statistics Canada. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
