Inflation relief felt largely at Canada’s gas pumps

Canada’s inflation rate is coming down, but the relief being felt by consumers is largely centred around the gasoline pump.

The latest figures from Statistics Canada show annual inflation rose just 2.8 per cent in June 2023, slowing from 3.4 per cent in May.

That’s a dramatic improvement from the 8.1 per cent peak Canadians suffered through last summer.

But excluding gasoline from the equation, Canada’s inflation rate was 4.0 per cent in June, and 4.4 per cent in May.

Gasoline prices have declined nearly 22 per cent since last June, when global energy markets spiked in reaction to Russia’s invasion of Ukraine.

But other categories continue to get more expensive for consumers, with food prices up 8.3 per cent year-over-year and mortgage interest costs up 30.1 per cent.

This report by The Canadian Press was first published July 18, 2023.