Annual inflation in Canada rose to 1.9% in June from 1.7% in May, the Statistical Office of the country reported. The reasons for the increase are a slowdown in the fall in gasoline prices and an increase in the cost of durable goods. Gasoline prices decreased by 13.4% year-on-year from 15.5% in May, which eased deflationary pressure in the energy sector. Excluding energy, inflation was 2.7%, reflecting a steady rise in prices. Transport continues to rise in price: prices for new cars increased by 4.1%, and used cars showed the first increase in 18 months due to a decrease in supply. The trade conflict with the United States exerted additional pressure: since July 15, Canada has imposed 25% duties on $30 billion worth of American goods in response to Washington's measures. This has already caused a record trade deficit and increased pressure on the consumer market. To mitigate the consequences, a postponement of duties has been introduced until October 15. Prices for clothing and footwear rose by 2% against 0.5% in May, partly due to higher import prices. Food inflation has slowed slightly, and prices for fresh vegetables have dropped for the first time since 2021.
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