Canada: Consumer Price Index, June 2019

The Consumer Price Index (CPI) rose 2.0% on a year-over-year basis in June, down from a 2.4% increase in May, largely due to lower month-over-month energy prices. Excluding energy, the CPI rose 2.6% year over year. Prices increased year over year in all eight major components.

On a seasonally adjusted monthly basis, the CPI declined 0.1% in June, following a 0.3% gain in May.

Highlights

Energy

Energy prices fell 4.1% year over year in June, following a 0.1% decrease in May. Consumers paid less for gasoline (-9.2%) and fuel oil and other fuels (-4.1%). This was due in part to falling oil prices amid rising fuel inventories in the United States and the elimination of carbon pricing in Alberta at the end of May.

The purchase of passenger vehicles index rose 3.0% on a year-over-year basis in June, following a 4.2% increase in May.

Food

The year-over-year increase in the food index (+3.5%) was led by higher prices for fresh vegetables (+17.3%) in June. This increase, the largest since January 2016, was attributable in part to inclement weather in agricultural regions.

Insurance

Following a series of rate increases, consumers paid more year over year for homeowners’ home and mortgage insurance (+6.3%) and passenger vehicle insurance premiums (+8.8%) in June. These increases were attributable, in part, to the rising cost and frequency of claims associated with weather-related events.

Regional Highlights

Among the provinces, energy prices fell the most year over year in Alberta (-8.4%) in June. Gasoline prices decreased 17.9% in the province, following a decline in global oil prices and the removal of carbon pricing. Natural gas prices fell 3.5% in Alberta due in part to a supply glut related to pipeline maintenance.

StatsCanada

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