Business Economy

Canada’s July CPI Rises 3.0% as Gasoline and Travel Costs Increase

Statistics Canada reported that Canada’s Consumer Price Index rose 3.0% year over year in July, with gasoline and travel-tour prices contributing to the faster pace.

By Grant Sullivan · August 17, 2026

Key takeaways

The Consumer Price Index rose 3.0% year over year in July, following a 2.8% increase in June.
Gasoline prices increased 25.7% year over year, while the CPI excluding gasoline rose 2.2% for a third consecutive month.
Food purchased from stores rose 3.1% year over year, slowing from 3.9% in June but remaining above headline CPI inflation for the 18th consecutive month.
The CPI rose 0.5% from June to July, or 0.3% on a seasonally adjusted basis.

Headline CPI growth accelerated in July

Canada’s Consumer Price Index increased 3.0% year over year in July, following a 2.8% gain in June. The index rose 0.5% month over month and increased 0.3% on a seasonally adjusted monthly basis.

Statistics Canada said higher gasoline and travel-tour prices contributed to the acceleration in headline CPI. The all-items CPI excluding gasoline rose 2.2% for the third consecutive month.

Gasoline and travel prices rose faster

Gasoline prices rose 25.7% year over year in July, following a 20.5% increase in June. Statistics Canada said the conflict in the Middle East, including the blockade of the Strait of Hormuz and partial closure of Red Sea shipping routes in late July, put upward pressure on gasoline prices.

Travel-tour prices increased 15.2% year over year, compared with 6.8% in June. The agency cited more expensive hotels and flights to U.S. destination cities during World Cup matches. Air transportation prices rose 12.0% year over year after increasing 9.6% in June, with higher jet fuel costs contributing to the rise.

Grocery inflation slowed but exceeded headline CPI

Food purchased from stores rose 3.1% year over year in July, down from a 3.9% increase in June. July marked the 18th consecutive month in which grocery price inflation exceeded the all-items CPI.

The slower annual rise reflected slower price growth for fresh vegetables and fresh or frozen chicken, along with lower cereal-product prices. Fresh fruit prices rose 6.1% year over year, and increased 4.7% month over month in July—the highest July monthly movement since 2011.

Provincial inflation varied

Prices rose at a faster year-over-year pace in July than in June in every province except Ontario. Ontario’s annual inflation rate was unchanged at 2.0%, the lowest among the provinces, with declines in homeowners’ replacement cost and natural-gas prices cited as contributing factors.

Nova Scotia had the highest provincial inflation rate at 5.0%, with higher electricity and rent prices driving the acceleration. In New Brunswick, higher electricity and traveller-accommodation prices led faster annual price growth.

Statistics Canada is scheduled to release the CPI for August on September 14.