Canada July CPI rose 3.0% from a year earlier in July 2026, topping the 2.9% forecast and the prior 2.8% reading.
On a monthly basis, consumer prices increased 0.5%. That beat the 0.4% estimate. In June, prices had fallen 0.4%.
The report also showed firmer core readings. BOC core rose 0.2% on the month, up from 0.1% before. On an annual basis, BOC core reached 2.3%, compared with 2.1% in the prior reading.
Canada July CPI Core Measures Firm
Canada July CPI also showed gains in other underlying measures. CPI median came in at 2.0%, above the 1.9% forecast. CPI trim rose to 1.9%, beating the 1.8% estimate.
Meanwhile, CPI common stood at 2.7%, up from 2.6% previously. The source article said transportation remained the main driver of inflation. However, food and recreation also added to price pressure.
For July, gasoline prices rose 25.7% from a year earlier. That was faster than the 20.5% pace in June. In addition, travel tour prices increased 15.2% in July, up from 6.8% in June.
Gasoline and Travel Costs Lead Gains
Airfares also showed a faster rise. They increased 12.0% in July, compared with 9.6% in June. The source article said the World Cup likely helped lift travel tour prices.
However, it also said the inflation picture looked more benign without gasoline. The article added that falling home prices and rents in some parts of Canada helped offset some pressure. It also noted that a gasoline holiday announced by the Carney environment is set to end on Sept. 7.
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Source: InvestingLive
