Canada inflation drops back to 2.7% in June

Annual inflation rate in Canada eased back to less than 2.7% in June after a upshot in the previous month, according to Statistics Canada’s CPI report Tuesday. The two core CPI readings preferred by the Bank of Canada — CPI-trim and CPI-median — also slowed down to 2.86% and 2.62%, respectively, easing concerns that inflation had sped up again.

Canada CPI June 2024: 2.7% YoY

CPI-trim: 2.9% YoY, CPI-median: 2.6% YoY

The three-month CPI growth rate over the second quarter was just a bit over 2%, at an annualized rate, successfully hitting the Canadian central bank’s inflation target. The core inflation measures also stayed at around 2.9%, within Bank of Canada inflation target range of 1%-3%. These numbers seems to validate the central’s decision to kick off its rate cut cycle in June.

Canada CPI June 2024: 2% (3-month annualized rate)

CPI-trim: 2.9% YoY & CPI-median: 2.9% (3-month annualized rate)

The June CPI figures nonetheless showed that food prices continued the acceleration. The food index rose 2.8% over the year, up from around 2.4% in the previous two months. The rise was driven by two months of elevated monthly growth of 0.85% in May and 0.53% in June.

StatCan mentioned that dairy products, fresh vegetables, non-alcoholic beverages, as well as preserved fruit and fruit preparations as some of the food purchased from stores categories that recorded higher yearly price growth rate in June.

Canada Food CPI June 2024: 2.8% YoY

Food CPI: 0.5% YoY