According to the latest data from StatCan, the Consumer Price Index (CPI) increased 2.8 per cent in June as fuel price increases cooled from rates seen the month prior.

The agency reports a 2.8 per cent increase when compared with June 2025, down from the 3.2 per cent annual increase recorded in May. Excluding gasoline, inflation remained unchanged at 2.2 per cent.

Overall, the Consumer Price Index declined 0.4 per cent from May, which StatCan says is the largest monthly drop since December 2024.

Gasoline prices drive slowdown in inflation growth

While prices at the pump continue to rise nationwide—up 20.5 per cent from a year earlier—StatCan noted the rate of increase slowed when compared to those seen in May 2026.

On a month-to-month basis, overall gasoline prices fell by 10.2 per cent, from 33.2 per cent in May, the largest decrease since the removal of the consumer carbon levy in April 2025.

That drop is largely attributed to diplomatic talks and ceasefire arrangements in the Middle East which resulted in a temporary easing of global oil prices.

Grocery prices continue to outpace overall inflation

The cost of groceries continued to put pressure on Canadians budgets, as prices increased 3.9 per cent year-over-year in June, a modest slowdown from the 4.3 per cent seen in May. Despite the decrease, June 2026 marked the 17th consecutive month grocery price inflation outpaced the all-items CPI.

StatCan says the year-over-year deceleration was driven by a 1.7 per cent reduction in price growth for fresh fruit—largely caused by a 0.6 per cent drop in the price of grapes.

Meanwhile, a 5.7 per cent surge in the price of fresh or frozen chicken, 6 per cent jump in the cost of bread, rolls and buns, as well as a 2.7 per cent spike for frozen foods all served to maintain the overall increase in prices faced by Canadians in the checkout line.

Travel costs jump as World Cup drives up demand

Travel-related costs also climbed sharply in June, driven by increased demand during the FIFA World Cup. Prices for traveller accommodation rose 10.1 per cent, while air transportation increased 9.6 per cent and travel tours were up 6.8 per cent compared with a year ago.

The agency noted the increase in air travel costs was the largest faced by consumers since February 2023, due to gains in domestic travel demand and higher prices for aviation fuel.

Passenger vehicle prices also continued to rise, although at a slower pace, increasing 1.9 per cent compared with a year earlier.

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Overall inflation cools slightly in Saskatchewan, nationwide 

In Saskatchewan, inflation followed the national trend and slowed in June as gasoline prices increased at a slower pace compared with a year earlier.

Across the country, inflation eased in every province except Prince Edward Island. Ontario recorded the lowest annual inflation rate at two per cent, while Nova Scotia saw the highest at 4.7 per cent.