Canada's Inflation Cools to 2.8% in June as Core Measures Hit Five-Year Low

Headline Inflation Undershoots Expectations

Statistics Canada said the Consumer Price Index rose 2.8% year over year in June 2026, down from 3.2% in May and below the 2.9% economists had expected. On a seasonally adjusted monthly basis, CPI fell 0.1% in June.

Gasoline prices remained a major swing factor: pump prices were up 20.5% year over year, down sharply from a 33.2% annual gain in May, and fell 10.2% on the month as an interim Middle East ceasefire eased oil prices.

Core Measures at a Five-Year Low

The Bank of Canada's preferred core inflation gauges eased more than expected in June. The median core measure came in at 1.9% and the trimmed-mean measure at 1.8% — the lowest readings for both in more than five years.

• CPI: 2.8% y/y in June, down from 3.2% in May, below the 2.9% consensus forecast - Monthly CPI: -0.1% (seasonally adjusted) - Median core: 1.9%; trimmed-mean core: 1.8% — both five-year lows - Gasoline: +20.5% y/y (down from +33.2% in May), -10.2% month over month Statistics Canada is scheduled to release July's CPI figures on August 17, 2026. This report is general news and information, not individualized financial advice.

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