Released: 20-07-2022
Consumer price index June 2022 8.1% (12 month change)
The pace of consumer inflation continued to rise, reaching 8.1% year-on-year in June, after rising 7.7% in May. The increase was the largest annual change since January 1983. The acceleration in June was mainly due to higher gasoline prices, however, price increases remained broad-based with seven of the eight main components increasing by 3% or more. Excluding gasoline, the CPI rose 6.5% year-on-year in June, following a 6.3% rise in May. On a monthly basis, the CPI rose 0.7% in June, following a 1.4% increase in May. On a seasonally adjusted monthly basis, the CPI increased by 0.6%. On average, prices rose faster than hourly wages, which rose 5.2% in the 12 months to June, according to Labor Force Survey data.
Chart 1 12-month change in the Consumer Price Index (CPI) and the CPI excluding petrol
Chart 2 Prices rise fastest in June in five main components
The increase in gasoline prices on an annual basis remains high
On an annual basis, consumers paid 54.6% more for gasoline in June after a 48.0% increase in May, contributing the most to overall consumer inflation. Prices at the pump rose 6.2% month-on-month in June, after rising 12.0% in May. Natural gas prices have largely followed crude oil prices, which peaked in the first week of June on higher global demand amid the easing of COVID-19 public health restrictions in China, the largest crude oil importer. Crude oil prices fell in the remaining weeks of June amid a slowdown in global demand on concerns of a global economic slowdown.
Passenger vehicle prices are rising
The passenger vehicle purchasing index rose 8.2% year-on-year in June after rising 6.8% in May. Demand for passenger vehicles continues to exceed supply as a result of the ongoing semiconductor shortage, putting upward pressure on prices. On a monthly basis, passenger vehicle prices rose 1.5% in June, as new (+1.6%) and used (+1.3%) prices rose. Month-over-month, prices for new vehicles rose at a faster pace than the 0.1% increase in May, partly due to higher availability of new vehicles by model year.
Enter used vehicle prices
With the introduction of used vehicle prices in the May CPI calculation, two new series were published: purchase of new passenger vehicles (2022-04=100) and purchase of used passenger vehicles (2022-04=100). Both price index series are available from April 2022 and are published nationally. For more information, consult the technical paper entitled “Measuring the price change for used vehicles in the Canadian Consumer Price Index”.
Chart 3 Similar increases in new and used passenger vehicle prices on a monthly basis
Service prices remain high
Prices for services rose 5.2% year-on-year in June. Homeowner replacement costs, other out-of-pocket living expenses, food purchased from restaurants, rent and traveler accommodations contributed to the year-over-year increase.
Chart 4 Housing services are the largest contributor to services inflation
Housing costs are dampened by other out-of-pocket living expenses, which are mitigated by mortgage interest costs
Other owned accommodation expenses rose less year-on-year in June (+12.2%) than in May (+14.8%), due to the first month-on-month decline since August 2019. This reflecting lower real estate supplies as home prices decline from highs in early 2022. The homeownership replacement cost index also rose at a slower annual rate in June (+10.0%) compared to May (+11.1 %), further mitigating the increase in the housing index. The housing cost index continued to decline at a slower annual rate, falling 0.6% in June after falling 2.7% in May, putting upward pressure on the all-items CPI. This was the biggest month-on-month increase (+1.4%) since September 1982 amid higher bond yields and a higher interest rate environment.
Infographic 1 Homeowner Replacement Costs and Other Owned Living Expenses Are Growing at a Slower Rate, and Mortgage Interest Costs are Declining at a Slower Year-over-Year Rate
Travel accommodation and air travel prices continue to rise at a faster rate
The relaxation of public health measures and the subsequent increase in tourism has led to greater demand for travel-related services. Travelers across the country faced higher prices for accommodation (+49.7%) compared to June 2021, with prices rising the most for consumers in Ontario (+68.0%). The return of sporting events, festivals and other large in-person gatherings has resulted in greater demand for accommodation, particularly in major urban centres. Air fares rose 6.4% month-on-month in June, after falling 0.8% in May. Air travel continued to grow amid easing of public health restrictions due to COVID-19, with pent-up demand heading into the summer travel season putting upward pressure on prices.
Explore CPI tools that can help you make informed financial decisions
Check out the Personal Inflation Calculator! This interactive calculator lets you enter dollar amounts in common expense categories to create a personalized inflation rate, which you can compare to the official measure of inflation for the average Canadian household — the Consumer Price Index (CPI). Visit the CPI portal to find all CPI data, publications, interactive tools, and announcements highlighting new products and upcoming CPI changes in one convenient location. Consult the Consumer Price Index Data Visualization Tool to access current and historical CPI data in a customizable visual format.
Regional points
Year-on-year, prices rose more in June than in May in eight provinces. Price growth was fastest in the Prairie counties as gasoline prices accelerated the most in those counties.
Figure 5 The Consumer Price Index is increasing at the fastest rate in eight provinces
Energy prices are rising in Alberta
Alberta consumers paid 54.6% more for natural gas year-over-year in June. Natural gas prices rose amid a combination of low supply in Canada as well as higher demand in Canada and the United States. Higher global prices linked to supply uncertainty related to Russia’s invasion of Ukraine also contributed to upward pressure on natural gas prices in Alberta. Similarly, electricity prices in Alberta rose 35.6% year over year in June, compared to a 21.1% increase in May. More than half of the electricity used in Alberta is generated by natural gas.
Note to readers
Real-time data tables
The real-time data table 18-10-0259-01 will be updated on August 2nd. For more information, consult the Real-Time Data Tables document.
Next version
The Consumer Price Index for July will be released on August 16.
Products
The “Consumer Price Index Data Visualization Tool” is available on the Statistics Canada website. More information on the concepts and use of the Consumer Price Index (CPI) is available at The Canadian Consumer Price Index Reference Paper (Catalog number 62-553-X). For information on the history of the CPI in Canada, consult the publication Exploring Canada’s First Century Consumer Price Index (Catalog number 62-604-X). Two videos, “An Overview of Canada’s Consumer Price Index (CPI)” and “The Consumer Price Index and Your Experience of Price Change,” are available on the Statistics Canada YouTube channel.
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