The Daily — Consumer Price Index, July 2024 (2024)

Released:2024-08-20

The Consumer Price Index (CPI) rose2.5% on a year-over-year basis in July, increasing at the slowest pace since March2021and down from a2.7% gain in June2024. Deceleration in headline inflation was broad-based, stemming from lower prices for travel tours, passenger vehicles and electricity.

On a monthly basis, the CPI rose0.4% in July, after falling0.1% in June. Gasoline prices increased month over month in July (+2.4%), putting upward pressure on the monthly CPI figure. On a seasonally adjusted monthly basis, the CPI rose0.3% in July.

Lower prices for travel-related services compared with a year ago

Prices for travel tours led the deceleration in the all-items CPI, falling2.8% year over year in July, following a7.4% increase in June. The decline was largely due to a base-year effect, as prices for travel tours rose15.5% month over month in July2023during the first summer without restrictions related to the COVID-19pandemic. Similarly, prices for traveller accommodation (-3.7%) and air transportation (-2.7%) fell year over year in July.

On a monthly basis, prices for travel tours (+4.5%), air transportation (+8.4%) and traveller accommodation (+7.1%) were up in July.

Prices for passenger vehicles continue to decline

Prices for passenger vehicles fell1.4% year over year in July, following a0.4% decline in June. This deceleration was driven by slower price growth for new vehicles (+1.0%) as inventory levels improved compared with July2023. At the same time, prices for used vehicles fell5.7% in July.

Gasoline prices rise at a faster pace

Year over year, gasoline prices rose at a faster pace in July (+1.9%) compared with June (+0.4%). Prices accelerated the most in the Prairie provinces, partially attributable to reduced supply amid a refinery shutdown in the Midwestern United States.

Regional highlights

Year over year, prices rose at a slower pace in July compared with June in five provinces. Price growth slowed the most in Prince Edward Island and Nova Scotia, due to deceleration in prices for gasoline and fuel oil and other fuels.

Slower year-over-year growth in shelter prices

Year over year, prices for shelter rose at a slower rate in July (+5.7%) compared with June (+6.2%), with downward pressure coming from the electricity; mortgage interest cost; rent; and fuel oil and other fuels indexes.

Year over year, electricity prices fell0.8% in July, following a2.4% gain in June. This decline was mainly due to lower prices in Alberta (-35.5%), resulting from a base-year effect, as prices increased28.1% month over month in July2023amid high summer demand.

The mortgage interest cost index continued to slow year over year, up21.0% in July compared with22.3% in June.

While prices remain elevated, the rent index continued to increase year over year, but at a slower pace in July (+8.5%) compared with June (+8.8%). Rent price growth slowed the most in Prince Edward Island (+1.7%), Alberta (+12.1%) and New Brunswick (+10.5%).

Prices for fuel oil and other fuels also exhibited a base-year effect, rising3.5% year over year in July following a10.5% increase in June. This mainly impacted Atlantic Canada, as fuel oil is more commonly used in that region for home heating.

Products

The "Consumer Price Index Data Visualization Tool" is available on the Statistics Canada website.

More information on the concepts and use of the Consumer Price Index (CPI) is available in The Canadian Consumer Price Index Reference Paper (Catalogue number62-553-X).

For information on the history of the CPI in Canada, consult the publication Exploring the first century of Canada's Consumer Price Index (Catalogue number62-604-X).

Two videos, "An Overview of Canada's Consumer Price Index (CPI)" and "The Consumer Price Index (CPI) and Your Experience of Price Change," are available on Statistics Canada's YouTube channel.

Find out answers to the most common questions posed about the CPI in the context of the COVID-19pandemic and beyond.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).