On a monthly basis, the consumer price index increased by 0.3%. June, Canada’s inflation rate was 3.1%, with costs for accommodation and transportation rising fast, but rises in food, clothes, and recreation moderated from May’s level. According to Statistics Canada, housing prices have risen by 4.4% in the last year, while transportation costs have risen by 5.6% since June of 2020.
However, the inflation rate has been driven down since the price of several items has fallen from where it was last year, notably beef, which has fallen by 11%, fresh vegetables (down by 7.5%), and cellular services (down an eye-popping 21 percent). The latter’s reduction “was mostly attributable to a number of promotions throughout the sector giving cheaper pricing for cellular phone plans and extra data,” according to the statistics agency.
As the cost of owning or renting a home continues to rise, shelter expenditures were a key factor in pushing the rate higher. The replacement cost, which is a proxy for home prices, increased by 12.9%. This is the second-fastest rate in 30 years, according to Bank of Montreal analyst Benjamin Reitzes, and the quickest since 1987.