Canadian Inflation Rate Cools Down in June

Canada's Consumer Price Index (CPI) inflation rate cooled down more than expected in June, according to Statistics Canada. The overall CPI decreased from 3.2% in May to 2.8% in June on an annualized basis, marking the largest monthly decline since 2024.

The Bank of Canada's key measures of core inflation also continued to cool down. CPI-Median declined from 2.1% in May to 1.9% in June, and CPI-Trim decreased from 2% to 1.8% over the same period.

The decline was largely driven by a decrease in gasoline prices, which cooled down from 33.2% in May to 20.5% in June. However, energy prices are expected to re-accelerate in July, and may have an impact on inflation rates.