Canada’s Consumer Price Index Rose 1.9 Percent in June 2025, Statistics Canada Reports

Canada’s Consumer Price Index (CPI) rose 1.9 percent in the twelve months to June 2025, according to Statistics Canada. This is an increase from the 1.7 percent annual rise recorded in May. Month-over-month, the CPI increased by 0.1 percent; seasonally adjusted, it rose 0.2 percent in June.

Statistics Canada attributed the faster pace of headline inflation in June largely to gasoline prices, which declined 13.4 percent compared to June 2024. The agency reported this was a smaller year-over-year drop than the 15.5 percent decrease in May. Gasoline prices were nearly unchanged from May to June, with lower refining margins offset by higher crude oil prices amid geopolitical conflicts.

Prices for durable goods increased at a quicker pace in June. Durable goods prices rose 2.7 percent compared to June 2024, following a 2.0 percent increase in May. Within this category, passenger vehicle prices rose 4.1 percent in June compared to the previous year, up from a 3.2 percent increase in May. Used passenger vehicle prices showed a 1.7 percent increase, marking their first annual rise in 18 months. Prices for new passenger vehicles went up 5.2 percent year-over-year, compared to a 4.9 percent increase in May. Furniture prices increased 3.3 percent following a 0.1 percent rise in May. Household appliance prices declined 0.4 percent in June after a 2.6 percent increase the previous month.

Clothing and footwear prices rose 2.0 percent year-over-year in June, up from a 0.5 percent increase the previous month. Statistics Canada stated that this was mainly due to the women’s clothing index, which was unchanged in June after declining 2.5 percent in May. The agency also noted that higher costs in this category were influenced by uncertainty around international trade and tariffs.

Food prices from stores increased 2.8 percent compared to June 2024, a slower pace than the 3.3 percent rise reported in May. Statistics Canada said this slower growth was largely due to a 3.1 percent year-over-year decline in fresh vegetable prices, the first such drop since October 2021. Notably, onion prices declined 10.3 percent and cucumber prices decreased 18.3 percent. Shelter costs rose 2.9 percent over the same period.

Transportation costs overall decreased 0.6 percent year-over-year. The CPI figure excluding energy increased 2.7 percent, which Statistics Canada partly attributed to the removal of consumer carbon pricing in April 2025.

Regionally, annual price increases accelerated in eight provinces, slowed in one, and remained unchanged in another compared to May. Statistics Canada noted that tariffs imposed by the United States and counter-tariffs by the Canadian government have affected final consumer prices in various sectors.

Statistics Canada is scheduled to release the Consumer Price Index for July on August 19, 2025.