Canada’s Inflation Eases Slightly, but Core Pressures Remain

Gasoline pulls inflation lower

Gasoline prices fell compared to last year, softening overall inflation. Excluding gasoline, CPI stood at 2.4 per cent year over year, highlighting the persistence of underlying pressures once volatile energy prices are excluded.

Food and shelter drive price growth

Food inflation rose around 3.4–3.5 per cent, with meat prices leading the increase. Shelter costs also climbed by roughly 2.6 per cent, adding to household budget strains. Together, these categories remain the biggest contributors to inflation.

Core inflation pressures persist

Core inflation, which strips out volatile categories like energy, showed ongoing strength. This suggests that while headline inflation is easing, deeper affordability pressures are not cooling quickly, posing challenges for households and policymakers alike.