Consumer Price Index Up 1.9% in June 2025, Statistics Canada Reports

The Consumer Price Index (CPI) increased by 1.9% in Canada for June 2025 compared to a year earlier, according to figures released by Statistics Canada. This represented a higher annual inflation rate than the 1.7% recorded in May.

Statistics Canada's report shows that price increases were influenced by several factors. Gasoline prices fell 13.4% over the year, but this was a smaller decline than the 15.5% decrease seen the previous month. Statistics Canada attributed the smaller annual decline to minimal changes in gasoline prices from May to June, as lower refining margins were offset by higher crude oil prices amid geopolitical conflicts. Without energy products, the CPI increased by 2.7% over the same period.

Durable goods prices rose 2.7% compared with June 2024, following a 2.0% increase the month before. Passenger vehicle prices increased 4.1% year-over-year, while used passenger vehicle prices rose 1.7%. According to Statistics Canada, this marked the first annual increase for used vehicles in 18 months. New passenger vehicle prices were up 5.2%. Furniture prices rose by 3.3%, while household appliance prices decreased by 0.4% from June 2024.

Clothing and footwear prices increased by 2.0% in June after rising 0.5% in May. The report notes that this change was led by stability in the women’s clothing category and higher costs due to tariffs related to international trade.

Grocery prices rose 2.8% year-over-year in June, following a 3.3% increase in May. Statistics Canada reported that this slower pace was largely due to fresh vegetable prices, which declined 3.1% over the year, the first such decrease since October 2021, with notable drops in the prices of onions and cucumbers.

Shelter costs increased by 2.9% in June compared to the previous year. Transportation costs across Canada decreased by 0.6% over the same period.

On a monthly basis, the CPI rose 0.1% in June, or 0.2% when adjusted for seasonal factors. Statistics Canada stated that, in comparison with May, prices rose at a faster rate in eight provinces, increased more slowly in one province, and were unchanged in another.

Statistics Canada’s next Consumer Price Index update is scheduled for release on August 19, 2025.