Canada’s July inflation rate revealed
Travel costs spike amid world cup demand
Travel-related categories saw some of the steepest increases. Prices for travel tours surged 15.2 per cent year over year in July, more than doubling June’s 6.8 per cent pace. The spike coincided with World Cup matches hosted in US destination cities, which pushed up hotel rates and airfares on cross-border routes.
Meanwhile, air transportation costs rose 12.0 per cent year over year, up from 9.6 per cent in June. Higher jet fuel prices compounded the demand-driven increases.
Regional disparities widen
Inflation accelerated in all provinces except Ontario, which held flat at 2.0 per cent for the second consecutive month. Ontario posted the lowest provincial inflation rate, reflecting declining homeowners’ replacement costs and a sharp 18.7 per cent drop in natural gas prices.
At the other end of the spectrum, Nova Scotia recorded the highest provincial inflation rate at 5.0 per cent, fuelled by rising electricity costs and an 8.7 per cent year-over-year increase in rent. New Brunswick also saw faster price growth, led by increases in electricity and traveller accommodation costs.
Grocery inflation eases but remains elevated
Food purchased from stores rose 3.1 per cent year over year in July, a deceleration from June’s 3.9 per cent pace. The slowdown was driven by moderating prices for fresh vegetables and fresh or frozen chicken, alongside an outright decline in cereal products.
