Canadians paid 32% more for tomatoes in June. Here’s what to know about the StatCan inflation report
- Grocery price inflation in Canada rose by 3.9% in June, slowing from May’s 4.3%, but has outpaced overall inflation for 17 consecutive months since February 2025.
- Overall inflation eased to 2.8% in June, mainly due to a 10.2% month-over-month decline in gasoline prices, the largest drop since April 2025 when the consumer carbon tax was removed.
- Price decreases were seen for several grocery items such as grapes, pasta, shrimp, seafood, and eggs, while prices increased for fresh/frozen chicken, bread, and prepared frozen foods; some items like tomatoes and lettuce had double-digit price hikes.
- Transportation costs fell overall, but travel-related services—flights, accommodation, tours, and car rentals—rose sharply due to increased domestic travel demand and events like the FIFA World Cup, marking the biggest rise in air transportation prices since February 2023.
Grocery price inflation increased more than overall inflation for the 17th consecutive month in June, according to Statistics Canada. While the cost of food purchased from stores grew at a slower pace (+3.9 per cent) than in May (+4.3 per cent), Canada’s grocery price inflation has outpaced headline inflation since February 2025.
Driven by lower gasoline prices at the pumps, the inflation rate eased to 2.8 per cent in June after a 3.2 per cent increase in May, the agency said in the latest Consumer Price Index (CPI), released Monday. Falling 0.4 per cent month-over-month, it was the largest monthly drop since December 2024.
Removing gas from the equation, Statistics Canada said that at 2.2 per cent, the CPI was the same in June as it was in May.
“While gasoline prices remained elevated due to the conflict in the Middle East, diplomatic talks and an interim ceasefire arrangement contributed to an easing of global oil prices in June, leading to a 10.2 per cent month-over-month decline,” according to Statistics Canada.
The agency said that this was the largest monthly drop since April 2025 when the consumer carbon tax was removed.
At grocery stores, the year-over-year deceleration was fuelled by slower growth in fresh fruit prices (+1.7 per cent) and a decrease in the cost of grapes (-0.6 per cent) in particular, Statistics Canada said. Dry or fresh pasta (-8.3 per cent), shrimp and prawns (-3.8 per cent), seafood and other marine products (-1.7 per cent), and eggs (-2.2 per cent) were among the foods that experienced a price drop.
The agency noted that higher prices for fresh or frozen chicken (+5.7 per cent), bread, rolls and buns (+6.0 per cent) and prepared frozen foods (+2.7 per cent) offset some of the slowdown.
Categories that experienced double-digit price increases in June included tomatoes (+31.7 per cent), lettuce (+19.3 per cent), carrots (+16.6 per cent), fresh or frozen beef (+13.8 per cent) and bananas (+11.5 per cent).
According to the CPI, five of the eight major components decelerated in June, including transportation, which dropped to 6.7 per cent from 9.0 per cent in May. Yet travel-related services accelerated by 10.1 per cent year-over-year in June compared to a 2.5 per cent increase in May. Flights, accommodation, tours and car rentals were all more expensive, especially in the host cities of Toronto and Vancouver as the FIFA World Cup kicked off on June 11.
June marked the largest increase in air transportation prices since February 2023, which Statistics Canada attributes to growing demand for domestic travel and higher jet fuel costs.