Take out the price of gas, and the inflation rate in Canada is about 2%.
On July 22, Statistics Canada announced that the Consumer Price Index (CPI) increased by 1.5% in the twelve months to June. However, when gasoline is excluded, the CPI was up 1.9% year over year at the end of June. This is equal to the increase recorded in May.
Prices up for all major components
Statistics Canada says that prices were up for all major components during the twelve-month period, with the shelter index and the household operations, furnishings and equipment index accounting for most of the year-over-year gain in consumer prices.
"The shelter index rose 1.6% in the 12 months to June, after increasing 1.4% in May," reads the announcement. "This acceleration was partly attributable to the homeowners' replacement cost index, which was up more year over year in June (+3.5%) than in May (+2.7%)." These increases were offset by a significant drop in fuel oil prices, which were down by 13.2% in June.
Core inflation rate
As for the Bank of Canada's core inflation rate, which strips out eight of the most volatile CPI components (fruit, vegetables, gasoline, fuel oil, natural gas, mortgage interest, intercity transportation, and tobacco products), it increased by 2.1% for the twelve months ending in June.