Published: 20-07-2022
Consumer price index
June 2022
8.1%
(change of 12 months)
The rate of consumer inflation continued to rise, to 8.1% year-on-year in June, after an increase of 7.7% in May. The increase was the largest annual change since January 1983. The acceleration in June was mainly due to rising gasoline prices, however, price increases remained widespread with seven of the eight components main increasing by 3% or more.
Excluding gasoline, the CPI rose 6.5% year-on-year in June, after rising 6.3% in May.
In monthly terms, the CPI rose 0.7% in June, after rising 1.4% in May. On a seasonally adjusted monthly basis, the CPI rose by 0.6%.
On average, prices rose faster than hourly wages, which rose 5.2% in the 12 months to June, according to the Labor Force Survey.
Graph 1 12-month change in the consumer price index (CPI) and the CPI without petrol
Graph 2 Prices rise at a faster pace in June on five main components
Year-on-year growth in gasoline prices remains high
Year-on-year, consumers paid 54.6% more for gasoline in June after an increase of 48.0% in May, which contributed more to overall consumer inflation.
Pump prices rose 6.2% month-on-month in June, following a 12.0% rise in May. Gas prices largely followed crude oil prices, which peaked in the first week of June with higher global demand amid easing public health restrictions on COVID-19 in China, the largest importer of crude oil. Crude oil prices fell during the remaining weeks of June amid a slowdown in global demand related to concerns about a global economic slowdown.
Passenger vehicle prices are rising
The passenger car purchases index rose 8.2% year-on-year in June after an increase of 6.8% in May. Demand for passenger vehicles continues to outstrip supply as a result of the ongoing semiconductor shortage, which is pushing up prices. In monthly terms, the prices of passenger cars increased by 1.5% in June, as the prices of new vehicles (+ 1.6%) and used vehicles (+ 1.3%) increased. Month after month, new vehicle prices rose at a faster rate than the 0.1% increase in May, due in part to higher availability of new model vehicles of the year.
Introduction of used vehicle prices
With the introduction of used vehicle prices in the May CPI calculation, two new series have been published: purchase of new passenger vehicles (2022-04 = 100) and purchase of used passenger vehicles (2022-04 = 100). The two series of price indices are available from April 2022 and are published nationally.
For more information, see the technical document entitled “Measuring the change in the price of used vehicles in the Canadian Consumer Price Index”.
Graph 3 Similar increases in the prices of new and used passenger vehicles on a monthly basis
Service prices remain high
Service prices rose 5.2% year-on-year in June. The cost of owner replacement, other property accommodation expenses, food purchased at restaurants, rental and accommodation for travelers all contributed to the year-on-year increase.
Graph 4 Reception services are the ones that contribute the most to the inflation of services
Housing costs slow down with other property spending on property, moderated by the cost of mortgage interest
Other property accommodation expenses increased less year-on-year in June (+ 12.2%) than in May (+ 14.8%), driven by the first month-on-month fall since August 2019. This reflects a lower real estate commission as house prices fall from early 2022 highs. The homeowner replacement cost index also rose at a slower pace in June (+ 10.0%) compared to May (+ 11.1%), further moderating the increase in the housing index.
The mortgage interest rate continued to decline at a slower year-on-year rate, 0.6% in June after falling 2.7% in May, which put upward pressure on Global CPI. This was driven by the largest month-on-month increase (+ 1.4%) since September 1982, amid higher bond yields and a higher interest rate environment.
Infographics 1 The cost of homeownership and other housing expenses increase at a slower rate and the cost of mortgage interest decreases at a slower rate year after year
Prices for passenger accommodation and air transport continue to rise at a faster rate
The easing of public health measures and the increase in tourism that has followed has led to increased demand for travel-related services. Travelers across the country faced higher accommodation prices (+ 49.7%) compared to June 2021, and prices rose more for Ontario consumers (+ 68.0%) . The return of sporting events, festivals and other large face-to-face meetings has led to increased demand for accommodation, especially in major urban centers.
Air transport prices rose 6.4% month-on-month in June, after falling 0.8% in May. Air travel has continued to rise amid easing of public health restrictions on COVID-19, with accumulated demand in the face of the summer travel season pushing up prices.
Explore consumer price index tools that can help you make informed financial decisions
Check out the personal inflation calculator! This interactive calculator allows you to enter dollar amounts in the common spending categories to produce a custom inflation rate, which you can compare to the official Canadian average household inflation measure: the Consumer Price Index (CPI). ).
Visit the Consumer Price Index portal to find all CPI data, posts, interactive tools, and announcements that highlight new products and upcoming CPI changes in one convenient place.
See the Consumer Price Index data visualization tool to access current and historical CPI data in a customizable visual format.
Regional aspects
In year-on-year terms, prices rose more in June than in May in eight provinces. Price growth was fastest in the Prairie provinces, as gasoline prices accelerated further in those provinces.
Graph 5 The consumer price index is growing at a faster rate in eight provinces
Energy prices are rising in Alberta
Alberta consumers paid 54.6% more for natural gas in June. Natural gas prices rose amid a combination of low supply in Canada and higher demand in Canada and the United States. Higher global prices associated with supply uncertainty related to Russia’s invasion of Ukraine have also contributed to upward pressure on natural gas prices in Alberta.
Similarly, electricity prices in Alberta rose 35.6% year-on-year in June, compared with a 21.1% increase in May. More than half of the electricity used in Alberta is produced with natural gas.
Note to readers
Real-time data tables
The real-time data table 18-10-0259-01 will be updated on August 2nd. For more information, see the “Real-Time Data Tables” document.
Next post
The July consumer price index will be released on August 16th.
Products
The “Consumer Price Index Data Visualization Tool” is available on the Statistics Canada website.
You will find more information about the concepts and use of the Consumer Price Index (CPI) at Canadian Consumer Price Index Reference Document (Catalog number62-553-X).
For information on the history of the CPI in Canada, see the publication Exploring Canada’s first-century consumer price index (Catalog number62-604-X).
Two videos, “An Overview of Canada’s Consumer Price Index (CPI)” and “The Consumer Price Index and Your Price Change Experience,” are available on Statistics Canada’s YouTube channel .
Contact information
For more information or to consult the concepts, methods or data quality of this publication, please contact us (toll-free numbers 1-800-263-1136; 514-283-8300; infostats @ statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).