In July, the Consumer Price Index (CPI) rose 2.5% year-on-year, the slowest increase since March 2021, compared to a 2.7% increase in June 2024. The slowdown in inflation was driven by lower prices for travel, private vehicles, and electricity. On a monthly basis, the CPI rose 0.4% in July after falling 0.1% in June. Gasoline prices increased 2.4% in July, putting upward pressure on the monthly CPI figure. On a seasonally adjusted monthly basis, the index increased 0.3% in July.
Declining prices for travel-related services add to the slowdown in inflation: Prices for travel-related services fell significantly compared to a year ago, contributing to a slowdown in the CPI for all items. In July, prices for travel tours fell 2.8% year-on-year, after a 7.4% increase in June. This decrease is due to the base effect, as prices for travel tours increased by 15.5% in July 2023 during the first summer without restrictions related to COVID-19 pandemic. In addition, prices for passenger accommodation and air transport decreased by 3.7% and 2.7%, respectively, year-on-year.
On a monthly basis, prices for tours increased by 4.5%, air transport by 8.4% and passenger accommodation by 7.1% in July.
Passenger car prices continue to fall while gasoline prices increase: Passenger car prices continued to decline, falling by 1.4% year-on-year in July, compared to a decrease of 0.4% in June. This slowdown is due to a slowdown in new vehicle prices (+1.0%) as inventory levels improved compared to July 2023. At same time, prices for used vehicles decreased significantly by 5.7% in July. Gasoline prices, on the other hand, rose at a faster pace in July, up 1.9% year-over-year, compared to a 0.4% increase in June. Prices accelerated significantly in the Prairie provinces, due to reduced supply as a result of a refinery shutdown in the Midwest.
Regional highlights
On a year-over-year basis, prices rose at a slower pace in July than in June in five provinces. The slowest price growth was in Prince Edward Island and Nova Scotia, due to slower gasoline, fuel oil and other fuels.
Shelter prices grow at a slower annual rate in July (+5.7%) than in June (+6.2%), with downward pressure coming from electricity; mortgage interest; rent; and fuel oil and fuel indices
On a year-over-year basis, electricity prices fell 0.8% in July, after rising 2.4% in June. The decline was mainly due to lower prices in Alberta (-3.5%), due to a base effect, where prices rose 28.1% m/m in July 2023 amid higher summer demand.
The mortgage interest cost index continued to slow year-over-year, rising 21.0% in July compared to 22.3% in June. While prices remained high, the rent index continued to rise year-over-year, but at a slower pace in July (+8.5%) compared to June (+8.8%). Rental price growth slowed further in Prince Edward Island (+1.7%), Alberta (+12.1%) and New Brunswick (+10.5%). Fuel oil and other fuel prices also showed a year-over-year effect, rising 3.5% y/y in July after increasing 10.5% in June.
This mainly affected the Atlantic Canada region, where fuel oil is most commonly used to heat homes. This interactive dashboard provides access to current and historical CPI data in a dynamic and customizable format. Key indicators such as 12-month and 1-month inflation rates and price trends are displayed in interactive charts, allowing users to compare and analyze changes in prices of all goods and services in the CPI basket over time.
Latest CPI Image
Use this tool to view data from the latest edition of the Consumer Price Index and explore recent price changes by basket component and geographic region. You can also explore the basket contents and the share of the total Canadian household budget that the various goods and services included represent.
Price Trends: 1914 to Present : Explore current and historical trends for various CPI items at the national or regional level. Create custom line charts, and choose from a variety of CPI indices including the monthly CPI, the seasonally adjusted CPI, and the Bank of Canada’s core measures.
About the Consumer Price Index : The Consumer Price Index represents changes in prices as experienced by Canadian consumers. It measures price changes by comparing the cost of a fixed basket of goods and services over time.
The goods and services in the CPI basket are divided into 8 main components: food; shelter; household operations, furniture and equipment; clothing and footwear; transportation; health and personal care; recreation, education and reading; and alcoholic beverages, tobacco products and recreational cannabis. The CPI data is published at different geographic levels including Canada, the 10 provinces, Whitehorse, Yellowknife and Iqaluit. The New Home Price Index (NHPI) is a monthly series that measures changes over time in the selling prices of new homes sold by builders, while the detailed specifications of each home remain the same between two consecutive periods. The survey covers the following housing types: single-family homes, semi-detached homes and townhouses.
Economic Output Grows 0.2% in May Real GDP rose 0.2% in May after rising 0.3% in April. Increases in manufacturing and public sector activity supported the headline gains, while declines in retail and wholesale activity dampened growth. Output increased in 15 of 20 industrial sectors in May. Economy-wide output has expanded.
