Canada’s inflation rate crept higher in June, pushed up by rising costs for both new and used vehicles, according to fresh data released Tuesday by Statistics Canada.
The annual inflation rate climbed to 1.9%, up from 1.7% in May. While gas prices remained relatively flat compared to May, the year-over-year comparison helped nudge inflation upward, since fuel prices were dropping more steeply during the same period last year.
For the first time in a year and a half, used vehicle prices posted a year-over-year increase, driven by tightening inventory and steady demand. Canadians also paid more for furniture and other long-lasting goods in June.
On a brighter note, inflation on food and shelter saw some moderation, providing limited relief to households already stretched by previous price spikes.
Despite the mixed bag, the Bank of Canada’s preferred core inflation indicators remained firm, showing no meaningful signs of cooling—adding another layer of complexity to the central bank’s future interest rate decisions.
Canadians hoping for a break from high costs may have to wait a little longer as the economy continues to adjust to shifting market pressures.