Canada’s inflation rate in June decreased to 2.8 percent as gas prices slowed down, according to recent Statistics Canada data. This shift follows a spike in inflation to 3.2 percent in May, primarily driven by gas prices. The drop from May to June marked the most significant monthly decline since December 2024.
Rising oil prices due to tensions between the U.S. and Iran had previously driven up gas costs. However, with the ceasefire and diplomatic negotiations last month, oil prices decreased, resulting in a 10.2 percent drop in gas prices month over month.
Subsequently, tensions escalated following the breakdown of the countries’ memorandum of understanding, leading to an increase in pump prices once again.
Statistics Canada reported that when gas prices are excluded, inflation remained stable from May to June. Additionally, grocery price increases moderated to 3.9 percent in June, down from 4.3 percent in May.
The cost of fresh fruits experienced slower growth, particularly for grapes. Some grocery items saw price hikes, such as fresh or frozen chicken, which rose by 5.7 percent, and bread products, which increased by six percent.