StatCan’s Consumer Price Index for July 2022 showed inflation steadied to 7.6%, down from 8.1% gain in June. The deceleration was a result of slower year-over-year growth in gasoline prices.
Although headline inflation went down, July prices for food bought in stores increased more sharply then they did in June: from 9.4% in June to a 9.9% increase in July. Also, prices for bakery products (+13.6%) continued to rise at a faster pace as wheat prices remained elevated. Higher input costs and global supply uncertainty related to the Russian invasion of Ukraine continued to put upward pressure on global wheat prices amid an already constrained supply.
Other statistics of note include:
- Gas prices going down: Consumers paid 9.2% less for gasoline in July compared with the previous month, the largest monthly decline since the pandemic began;
- Big price increases in travel: Traveler accommodation prices rose 47.7% in July compared with the same month a year earlier, with prices rising the most in Ontario (+70.0%). Airfares rose 25.5% in July compared with the previous month, in the wake of strong demand for flights;
- Wages and consumer purchasing power: On average, price increases continued to exceed the year-over-year increase in hourly wages (+5.2%) in July. While consumer inflation continued to exceed wage growth, the gap in purchasing power was smaller than in June.
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Senior Policy Analyst, Government Relations