Canada's CPI Decelerates in July, as Expected, on Lower Gasoline Prices

08:44 AM EDT, 08/19/2025 (MT Newswires) -- The Canadian consumer price index rose 1.7% on a year-over-year basis in July, down from a 1.9% increase in June, said the country's statistical agency on Tuesday.

July's CPI was in line with a consensus figure provided by Mitsubishi UFG.

Prices for gasoline led the slowdown in the all-items CPI, falling 16.1% year over year in July, following a 13.4% decline in June, noted Statistics Canada in a statement. Excluding gasoline, the CPI rose 2.5% year over year in July, matching the increases in May and June.

Moderating the deceleration in July were higher prices for groceries and a smaller year-over-year decline in natural gas prices compared with June.

The CPI rose 0.3% month-over-month in July on a non-seasonally adjusted basis, added StatsCan. On a seasonally adjusted monthly basis, the CPI was up 0.1%.

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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