OTTAWA – Canada’s inflation rate slowed last month, hitting 3.1 per cent in June on a year-over-year basis.
That’s down from a 3.6 per cent gain in May, the largest yearly increase in a decade, according to Statistics Canada.
The agency says part of the reading for June has to do with comparing prices to the lows recorded in the same month last year, as the COVID-19 pandemic continued to impact businesses and communities across the country.
Gasoline prices, for instance, saw a year-over-year rise of 32 per cent in June compared with 43.4 per cent in May because gasoline prices had partially recovered in June 2020 after plummeting at the start of the pandemic.
Excluding gasoline prices, the annual rate of inflation would have been 2.2 per cent, the agency adds.
Meanwhile, the CPI rose 0.3 per cent in June on a monthly basis, down from a 0.5 per cent increase in May.