As of July 18, 2023, the inflation rate in Canada experienced a significant decline to 2.8% in June 2023, down from the 3.4% annual inflation rate observed in May 2023. This marks the lowest level of headline inflation since March 2021. The decline can be attributed primarily to a reduction in gas prices, which decreased by 22% compared to the previous year. Excluding gasoline prices, inflation rates were 4% and 4.4% in June and May respectively. Notably, grocery inflation stood at 9.1%, while mortgage interest inflation reached 30.1% and played a significant role in driving inflation over the past year. If we exclude food, inflation was recorded at 1.7%, and excluding mortgage interest, the Consumer Price Index (CPI) only rose by 2%. In June, the monthly CPI rose by 0.1% compared to a 0.4% increase in May. While sub-3% inflation is positive, it has not yet reached the target level. Considering the annualized increase in CPI over the past nine months, the rate stands at 3.9%, indicating that headline inflation is likely to rise in the coming three months
the current inflation rate in Canada stands at 2.8%
