Statistics Canada says the rate of inflation in Canada rose to 1.9% in the month of June.The slight increase comes after the pace of inflation held steady at 1.7% in May.The rise in inflation comes as gasoline prices fell to a lesser extent in June, -13.4%, than in May, -15.5%. The smaller decline in gasoline prices was a result of a larger month-over-month decrease in June 2025, -0.7%, compared with June 2024, -3.1%.Amid geopolitical conflicts, gasoline prices were nearly unchanged in June, as lower refining margins were offset by higher crude oil prices, Statistics Canada said Tuesday.Meanwhile, prices of some goods, including passenger vehicles, furniture and clothing, have also gone up in June, putting upward pressure on the Consumer Price Index (CPI)..Economist says Alberta-Ontario pipeline requires other provinces, federal approval.Prices for durable goods rose 2.7% in June after increasing 2% in May on a year-over-year basis.Prices of new cars rose 4.1% year over year in June following a 3.2% increase in May. Prices of used cars rose 1.7% in June after declining 0.1% in May, marking the first year-over-year increase in used cars in 18 months.Lower inventory of used cars has driven prices up, accelerating the pace of inflation, Moshe Lander, an economics professor at Concordia University, told the Western Standard Tuesday.Uncertainty surrounding international trade and tariffs increased pressure on clothes and footwear prices, which rose 2.0% year over year in June after increasing 0.5% in May, according to Stats Canada.Prices of food, on the other hand, rose 2.8% year over year in June following a 3.3% increase in May. Stats Canada says “the slower growth was largely a result of fresh vegetable prices, which declined 3.1% year over year in June following a 1.0% increase in May.” The decline was driven by lower prices for onions, -10.3%, and cucumbers, -18.3%. It is the first decline since October 2021..EXCLUSIVE: UCP members propose party vote on Alberta independence.“Year over year, the CPI excluding energy (+2.7%) remained higher than the CPI in June, partly due to the removal of consumer carbon pricing in April,” reads Statistics Canada’s website.“On a monthly basis, the CPI rose 0.1% in June. On a seasonally adjusted monthly basis, the CPI was up 0.2%.”According to Lander, though Canadians are financially stretched, they should not be worried about the 0.2% inflation rate increase. He explains the difference as follows:“If something cost $100 a year ago, it would now cost $101.90. Had inflation stayed at last month’s level, $100 a year ago would now cost $101.70,” Lander explained.The next Bank of Canada interest rate announcement is scheduled to take place on July 30. Lander is expecting the interest rate to remain steady at 2.75%, as cutting rates prematurely has "implications.""The Bank of Canada is committed to keeping inflation between 1 and 3%, and inflation came in at 1.9%," Lander said. "This is perfect given that we're five months into a trade war with the US. Damage from the tariffs has not yet shown up in the data, which is actually a good thing. So, there may be a little bit of worrying signs for people who are hoping for an interest rate cut.".Political scientists say UCP members' demand to vote for Alberta independence ‘inevitable’
