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Lower gas prices bring inflation down to 2.8% in June: StatCan

Statistics Canada says the annual rate of inflation eased back below 3% in June as motorists paid less to fill up the gas tank.
7/20/2026
oil pump with downward arrow
Image: Shutterstock
oil pump with downward arrow
Image: Shutterstock

Inflation slowed to 2.8% in June, down from 3.2% in May and a tick lower than most economists were expecting.

Inflation surged over the spring on the back of higher oil prices tied to war in the Middle East, but those costs fell 10% in June as peace talks progressed between the United States and Iran.

StatCan says inflation was unchanged from May to June when gas prices are taken out of the equation.

READ: Temporary relief in gas prices expected to pull inflation back below 3% in June

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Prices at the grocery store, meanwhile, were up 3.9% cent last month, but that also marked a slowdown from May as price hikes eased on fresh fruit.

StatCan says costs for traveler accommodations in Ontario and British Columbia were up roughly 20% in June as Toronto and Vancouver played host to FIFA World Cup games.

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