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Canada CPI cools as gasoline prices drive inflation lower in June

June headline CPI fell 0.4% month over month, and core measures like CPI Median and CPI Trimmed eased below prior readings.

Reported · Written up by our desk · Central Banks

Canada’s annual inflation rate slowed to 2.8% in June from 3.2% in May, while the monthly headline CPI print declined 0.4%, the largest monthly drop since December 2024, according to Action Forex.

The moderation was driven mainly by gasoline prices, which fell 10.2% on the month, even as pump prices remained higher than a year earlier, reflecting easing oil price pressures during June.

Underlying inflation also softened. CPI Median eased to 1.9% year over year from 2.1%, and CPI Trimmed slowed to 1.8% from 2.0%. Common CPI edged down to 2.6% from 2.7%, and excluding gasoline, headline CPI was unchanged at 2.2% year over year, indicating broader price pressures stayed contained.

Action Forex said the data should reinforce an expectation that the Bank of Canada can keep a patient approach to policy, with policymakers likely weighing whether easing energy prices continue to offset the risk of renewed volatility from geopolitical tensions in the Middle East.

Latest closeGasoline (RBOB) $3.114 ▼5.7%

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