Canada’s Consumer Price Index (CPI) increased by 2.5% year-over-year in July, marking the slowest inflation rate since March 2021, according to data released by Statistics Canada. This figure represents a decrease from the 2.7% annual gain recorded in June 2024.

The deceleration in headline inflation was broad-based, with notable contributions from lower prices in travel tours, passenger vehicles, and electricity. On a monthly basis, the CPI rose 0.4% in July, following a 0.1% decline in June. Gasoline prices, which increased by 2.4% month-over-month, exerted upward pressure on the monthly CPI figure.

The passenger vehicle sector continued to see price declines, with a 1.4% year-over-year decrease in July, following a 0.4% drop in June. This deceleration was driven by slower price growth for new vehicles (1.0%) as inventory levels improved. Used vehicle prices fell by 5.7% in July.

Regionally, five provinces experienced slower year-over-year price growth in July compared to June. Prince Edward Island and Nova Scotia saw the most significant slowdowns, primarily due to deceleration in gasoline and fuel oil prices.

The shelter price index rose at a slower rate of 5.7% year-over-year in July, down from 6.2% in June. This moderation was influenced by declines in electricity prices, slower growth in mortgage interest costs, and a slight easing in rent increases.

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.