Grocery inflation decelerates in July as fresh fruit prices rise 6.1%: StatCan

Canada’s headline inflation rate rose to 3% in July, thanks to higher prices for gasoline and travel tours. 

That follows a 2.8% gain in June, Statistics Canada said.

The agency released its monthly Consumer Price Index (CPI) report on Monday (Aug. 17). Excluding gasoline, inflation rose 2.2% for the third consecutive month.

A deceleration in inflation for food purchased from stores helped offset inflation for the month.

Prices for food purchased from stores grew at a slower pace in July, up 3.1% compared to 3.9% in June.

However, July was the 18th consecutive month that grocery price inflation outpaced the headline inflation rate. 

The year-over-year deceleration in grocery prices was driven by slower price growth for fresh vegetables (up 3.9%) and fresh or frozen chicken (up 0.3%) as well as lower prices for cereal products (down 1.7%). 

July saw high prices for fresh fruit, up 6.1%, compared with a 1.7% increase in June.

On a monthly basis, StatCan said price growth for fresh fruit recorded the highest month-over-month movement for the month of July since 2011, at 4.7%. Driving the monthly increase were higher prices for berries and melons.

Gasoline prices rose 25.7% in July compared with 20.5% in June, due to the ongoing conflict in the Middle East.