The Consumer Price Index (CPI) rose 2.0% on a year-over-year basis in June, down from a 2.4% increase in May, largely due to lower month-over-month energy prices. Excluding energy, the CPI rose 2.6% year over year. Prices increased year over year in all eight major components.
On a seasonally adjusted monthly basis, the CPI declined 0.1% in June, following a 0.3% gain in May.
Energy prices fell 4.1% year over year in June, following a 0.1% decrease in May. Consumers paid less for gasoline (-9.2%) and fuel oil and other fuels (-4.1%). This was due in part to falling oil prices amid rising fuel inventories in the United States and the elimination of carbon pricing in Alberta at the end of May.
The purchase of passenger vehicles index rose 3.0% on a year-over-year basis in June, following a 4.2% increase in May.
The year-over-year increase in the food index (+3.5%) was led by higher prices for fresh vegetables (+17.3%) in June. This increase, the largest since January 2016, was attributable in part to inclement weather in agricultural regions.
Following a series of rate increases, consumers paid more year over year for homeowners’ home and mortgage insurance (+6.3%) and passenger vehicle insurance premiums (+8.8%) in June. These increases were attributable, in part, to the rising cost and frequency of claims associated with weather-related events.
Among the provinces, energy prices fell the most year over year in Alberta (-8.4%) in June. Gasoline prices decreased 17.9% in the province, following a decline in global oil prices and the removal of carbon pricing. Natural gas prices fell 3.5% in Alberta due in part to a supply glut related to pipeline maintenance.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.