Food inflation slows, but still outpaced general inflation for 18th consecutive month
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Higher gasoline prices pushed Canada’s inflation rate up to three per cent in July, but economists said they’ll be watching whether new 50 per cent U.S. tariffs go into effect this week to determine which way the Consumer Price Index will move next.
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Gas prices rose by 25.7 per cent year-over-year for the month, up from a 20.5 per cent gain in June, according to monthly data from Statistics Canada released on Monday.
Officials attributed the gas price spike to the ongoing conflict in the Middle East and the blockade of the Strait of Hormuz, along with the partial closure of Red Sea shipping routes in late July.
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While inflation was higher than the 2.8 per cent level recorded in June, food inflation slowed to 3.1 per cent following a 3.9 per cent increase the month prior, the slowest pace of growth since June 2025.
Slower price growth for fresh vegetables and chicken, as well as lower prices for cereal products drove the slowdown, which was offset by higher prices for fresh fruit.
Food items that increased the most in price on a yearly basis included bananas (13 per cent), lettuce (18.8 per cent), carrots (15.6 per cent) and beef (12.4 per cent). Items that decreased in price included shrimp and prawns, eggs, cereal products, oranges, grapes, dried fruit, prepared soup and some oils.