Canada CPI Higher in June Vs May, as Expected

08:44 AM EDT, 07/15/2025 (MT Newswires) -- The Canadian consumer price index rose 1.9% year-over-year in June, up from a 1.7% increase in May, said the country's statistical agency on Tuesday.

June's CPI was perfectly in line with a consensus figure provided by MUFG.

Headline inflation grew at a faster pace, as gasoline prices fell to a lesser extent in June (-13.4% month over month) than in May (-15.5%). Additionally, faster price growth for some durable goods, such as passenger vehicles and furniture, put upward pressure on the CPI in June, wrote Statistics Canada in a note.

Year over year, the CPI excluding energy at 2.7% year over year remained higher than the CPI in June, partly due to the removal of consumer carbon pricing in April.

On a monthly basis, the CPI rose 0.1% in June on a non-seasonally adjusted bases, added StatsCan. On a seasonally adjusted monthly basis, the CPI was up 0.2%.

Passenger vehicle prices rose 4.1% year over year in June following a 3.2% increase in May. Used passenger vehicle prices rose 1.7% in June after declining 0.1% in May, with price growth occurring amid tighter inventories. This was the first year-over-year increase in used passenger vehicle prices in 18 months. Prices for new passenger vehicles rose at a faster pace in June (+5.2%) than in May (+4.9%).

Furniture prices also rose at a faster pace in June (+3.3%) compared with May (+0.1%). At the same time, prices for household appliances fell 0.4% in June after increasing 2.6% in May.

Prices for food purchased from stores rose 2.8% year over year in June following a 3.3% increase in May. The slower growth was largely a result of fresh vegetable prices, which declined 3.1% year over year in June following a 1.0% increase in May, added the Ottawa-based agency. This decline was the first since October 2021 and was driven by lower prices for onions (-10.3%) and cucumbers (-18.3%).

The monthly and quarterly CPI reports, reported by StatsCan, measure the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing. The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Bank of Canada as a sign of underlying inflation pressures.

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