Canada’s CPI slowed to 2.5% yoy in July, down from 2.7% yoy in June, aligning with market expectations. This marks the slowest pace of inflation since March 2021. According to Statistics Canada, the deceleration in headline inflation was broad-based, with lower prices for travel tours, passenger vehicles, and electricity contributing to the overall decline.
Core inflation measures also showed signs of easing. CPI median fell from 2.6% yoy to 2.4% yoy, slightly below expectations of 2.5% yoy. CPI trimmed mean slowed from 2.9% yoy to 2.7% yoy, matching expectations, while CPI common edged down from 2.3% yoy to 2.2% yoy, also in line with forecasts.
On a monthly basis, CPI rose by 0.4% mom, exceeding the expected 0.3% mom increase. Notably, gasoline prices jumped 2.4% mom. exerting upward pressure on the headline figure.
Full Canada CPI release here.
