The Consumer Price Index (CPI) rose 1.7% on a year-over-year basis in July, down from a 1.9% increase in June. 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. Excluding gasoline, the CPI rose 2.5% in July, matching the increases in May and June, according to a report released Tuesday by Statistics Canada.
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 seasonally adjusted monthly basis, the CPI was up 0.1%, said the federal agency.
“Year over year, gasoline prices continued to reflect the removal of the consumer carbon levy, falling 16.1% in July, following a 13.4% decline in June. In recent months, prices for gasoline have been relatively stable, increasing 0.4% since April,” noted Statistics Canada.
“On a monthly basis, gasoline prices fell 0.7% in July. Lower crude oil prices, following the ceasefire between Iran and Israel, contributed to the decline. In addition, increased supply from the Organization of the Petroleum Exporting Countries and its partners (OPEC+) put downward pressure on the index.”
In July, prices for shelter rose 3.0% year over year, following a 2.9% increase in June, with upward pressure mostly coming from the natural gas and rent indexes. This was the first acceleration in shelter prices since February 2024, said Statistics Canada, adding that prices for natural gas fell to a lesser extent in July (-7.3%) compared with June (-14.1%). The smaller decline was mainly due to higher prices in Ontario, which increased 1.8% in July after a 14.0% decline in June.
“Rent prices rose at a faster pace year over year, up 5.1% in July following a 4.7% increase in June . . . Moderating the acceleration in shelter was continued slower price growth in mortgage interest cost, which rose 4.8% year over year in July, after a 5.6% gain in June. The mortgage interest cost index has decelerated on a year-over-year basis since September 2023.”
Year over year, prices for food purchased from stores rose at a faster pace in July (+3.4%) compared with June (+2.8%). Prices for confectionery (+11.8%) and coffee (+28.6%) accelerated, contributing to the increase in grocery prices. Unfavourable weather conditions in growing regions led to higher prices for the primary ingredients (cocoa and coffee beans) used to produce these food products, explained Statistics Canada. Additionally, prices for fresh fruit rose 3.9% year over year in July, following a 2.1% increase in June, largely stemming from higher prices for grapes (+29.7%). As of July 2025, Canadians were paying 27.1% more for food purchased from stores than they were in July 2020.
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