In line with recent comments from the Bank of Canada governor, the consumer price index (CPI) rose 8.1% year on year in June, Statistics Canada released Wednesday morning. In May it was 7.7%. On a seasonally adjusted monthly basis, the CPI rose by 0.6% in June.
Posted at 8:32
Updated at 8:59 am
This is the strongest annual increase since January 1983.
The manager? Gasoline prices again and again. “Year-on-year, consumers paid 54.6% more for gasoline in June after paying 48.0% more in May. This price increase contributed the most to headline inflation. says Statistics Canada.
Pump prices rose 6.2% mom in June after rising 12% in May.
But increases remain widespread, with seven of the eight major components up 3% or more, the federal agency said in its release. Groceries were up 8.8% yoy in June, with supermarkets up 9.4%.
On a monthly basis, CPI rose 0.7% in June after rising 1.4% in May. On a seasonally adjusted monthly basis, CPI rose 0.6%.
The purchasing power of households continues to deteriorate online, and prices are rising faster than average hourly wages. This rose by 5.2% in the twelve months to June.
Vehicle prices go up
The price index for the purchase of passenger cars increased by 8.2% yoy in June, compared with 6.8% in May. “Demand for automobiles continues to outstrip supply due to continued semiconductor chip shortages, putting upward pressure on prices,” Statistics Canada said.
Service prices remain high
Services prices rose by 5.2% in June. However, house price growth slowed from May. “This slowdown is primarily due to the first month-on-month decline since August 2019 and reflects lower real estate commissions,” it said.
The prices for travel accommodation and air travel continue to rise faster.
More details to come.