Canadians looking for a break from rising prices got some good news this week. Statistics Canada released the latest Consumer Price Index (CPI) data, showing inflation cooled to 2.7% year-over-year in June. This is down from a 2.9% increase in May.
Key Takeaways:
- Slower Gasoline Prices: The slowdown in inflation was largely driven by gasoline prices, which rose a mere 0.4% in June compared to 5.6% in May.
- Food Prices Up, Durables Down: While gasoline prices eased, food purchased from stores saw a 2.1% increase. Prices for durable goods, on the other hand, continued to decline by 1.8%.
- Monthly Fluctuation: The CPI dipped slightly by 0.1% on a monthly basis in June, following a 0.6% increase in May. This decrease was attributed to lower travel tour costs and gasoline prices.
What This Means for You:
A lower CPI indicates a slowdown in inflation, which can be a positive sign for consumers. This means the purchasing power of your dollar goes slightly further. However, it’s important to remember that inflation is still happening, and certain categories like food might see price hikes.
Stay Informed:
The Bank of Canada uses the CPI to determine interest rates. A cooling inflation rate could influence upcoming rate decisions. Stay updated by following the Bank of Canada’s announcements on their website: [Bank of Canada interest rates ON bankofcanada.ca]
Looking for More?
Statistics Canada offers a detailed breakdown of the CPI data, including information on specific categories: [Statistics Canada Consumer Price Index ON statcan.gc.ca]
Leave a Reply