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).