Consumer Price Index, July 2024
Released: 2024-08-20
The Consumer Price Index (CPI) rose 2.5% on a year-over-year basis in July, increasing at the slowest pace since March 2021 and down from a 2.7% gain in June 2024. Deceleration in headline inflation was broad-based, stemming from lower prices for travel tours, passenger vehicles and electricity.
On a monthly basis, the CPI rose 0.4% in July, after falling 0.1% in June. Gasoline prices increased month over month in July (+2.4%), putting upward pressure on the monthly CPI figure. On a seasonally adjusted monthly basis, the CPI rose 0.3% in July.
Chart 1
12-month change in the Consumer Price Index (CPI) and CPI excluding gasoline
Chart 2
Deceleration in headline inflation led by shelter component
Lower prices for travel-related services compared with a year ago
Prices for travel tours led the deceleration in the all-items CPI, falling 2.8% year over year in July, following a 7.4% increase in June. The decline was largely due to a base-year effect, as prices for travel tours rose 15.5% month over month in July 2023 during the first summer without restrictions related to the COVID-19 pandemic. Similarly, prices for traveller accommodation (-3.7%) and air transportation (-2.7%) fell year over year in July.
On a monthly basis, prices for travel tours (+4.5%), air transportation (+8.4%) and traveller accommodation (+7.1%) were up in July.
Prices for passenger vehicles continue to decline
Prices for passenger vehicles fell 1.4% year over year in July, following a 0.4% decline in June. This deceleration was driven by slower price growth for new vehicles (+1.0%) as inventory levels improved compared with July 2023. At the same time, prices for used vehicles fell 5.7% in July.
Chart 3
Prices for passenger vehicles decline
Gasoline prices rise at a faster pace
Year over year, gasoline prices rose at a faster pace in July (+1.9%) compared with June (+0.4%). Prices accelerated the most in the Prairie provinces, partially attributable to reduced supply amid a refinery shutdown in the Midwestern United States.
Explore the Consumer Price Index tools
Check out Statistics Canada's Food Price Data Hub, which features a variety of food price related statistics, articles and tools.
Check out the Personal Inflation Calculator. This interactive calculator allows you to enter dollar amounts in the common expense categories to produce a personalized inflation rate, which you can compare to the official measure of inflation for the average Canadian household—the Consumer Price Index (CPI).
Browse the Consumer Price Index Data Visualization Tool to access current (Latest Snapshot of the CPI) and historical (Price trends: 1914 to today) CPI data in a customizable visual format.
Visit the Consumer Price Index portal to find all CPI data, publications, interactive tools, and announcements highlighting new products and upcoming changes to the CPI in one convenient location.
Regional highlights
Year over year, prices rose at a slower pace in July compared with June in five provinces. Price growth slowed the most in Prince Edward Island and Nova Scotia, due to deceleration in prices for gasoline and fuel oil and other fuels.
Chart 4
The Consumer Price Index rises at a slower pace in five provinces
Slower year-over-year growth in shelter prices
Year over year, prices for shelter rose at a slower rate in July (+5.7%) compared with June (+6.2%), with downward pressure coming from the electricity; mortgage interest cost; rent; and fuel oil and other fuels indexes.
Year over year, electricity prices fell 0.8% in July, following a 2.4% gain in June. This decline was mainly due to lower prices in Alberta (-35.5%), resulting from a base-year effect, as prices increased 28.1% month over month in July 2023 amid high summer demand.
The mortgage interest cost index continued to slow year over year, up 21.0% in July compared with 22.3% in June.
While prices remain elevated, the rent index continued to increase year over year, but at a slower pace in July (+8.5%) compared with June (+8.8%). Rent price growth slowed the most in Prince Edward Island (+1.7%), Alberta (+12.1%) and New Brunswick (+10.5%).
Prices for fuel oil and other fuels also exhibited a base-year effect, rising 3.5% year over year in July following a 10.5% increase in June. This mainly impacted Atlantic Canada, as fuel oil is more commonly used in that region for home heating.
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Note to readers
Upcoming enhancements: New approach to estimating the cellular services price index
With the release of the Consumer Price Index for August on September 17, the cellular services price index will be calculated using an enhanced methodology and new data sources. Today, Statistics Canada released the technical paper, "Updated Methodology for the Compilation of the Cellular Services Price Index," describing the new approach.
Real-time data tables
Real-time data table 18-10-0259-01 will be updated on September 3. For more information, consult the document, "Real-time data tables."
Next release
The Consumer Price Index for August will be released on September 17.
Products
The "Consumer Price Index Data Visualization Tool" is available on the Statistics Canada website.
More information on the concepts and use of the Consumer Price Index (CPI) is available in The Canadian Consumer Price Index Reference Paper (62-553-X).
For information on the history of the CPI in Canada, consult the publication Exploring the first century of Canada's Consumer Price Index (62-604-X).
Two videos, "An Overview of Canada's Consumer Price Index (CPI)" and "The Consumer Price Index (CPI) and Your Experience of Price Change," are available on Statistics Canada's YouTube channel.
Find out answers to the most common questions posed about the CPI in the context of the COVID-19 pandemic and beyond.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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