Canada's annual consumer inflation rises 2.7% in June, slowing from 2.9% in May

By Ovunc Kutlu

ISTANBUL (AA) - Annual Canadian consumer inflation came in at 2.7% in June, slowing from a 2.9% year-on-year gain recorded in May, the country’s statistical authority said Tuesday.

The figure, in addition, reflects a significant slowdown since the 8.1% annual gain recorded in June 2022 -- the highest for the consumer price index (CPI) in 39 years.

"The deceleration was largely the result of slower year-over-year growth in gasoline prices, which rose 0.4% in June following a 5.6% increase in May," Statistics Canada said in a statement.

"This monthly decrease coincided with an announcement from the Organization of the Petroleum Exporting Countries and its partners (OPEC+) to gradually phase out voluntary production cuts later this year and the restart of production for some refineries following shutdowns for spring maintenance," it added. The consumer price index fell 0.1% in June, following a 0.6% increase in May.

The expectation for the figure was to show a monthly increase of 0.1%.

The monthly decrease was driven by lower prices for travel tours, which plummeted 11.1% and gasoline with a decline of 3.1%, according to the agency.