Canada's CPI rises 3.3 pct in July

Acceleration in headline consumer inflation was mainly attributable to a base-year effect in gasoline prices, as a large monthly decline in July 2022 is no longer impacting the 12-month movement.

Excluding gasoline, the CPI rose 4.1 percent, edging up from 4 percent in June, the national statistical agency said.

Electricity prices rose at a faster pace, mostly due to a 127.8 percent increase in Albertan electricity prices, which can be volatile, amid high summer demand, the agency said.

According to the agency, in the early months of the year, when demand was last this high, provincial rebates and a price cap kept prices lower for consumers.

These policy interventions were gradually phased out and ended in spring 2023. A base-year effect also contributed to the increase. When the provincial rebate program was introduced in July 2022, prices fell 24.4 percent month over month.

This decrease is no longer impacting the 12-month movement, putting upward pressure on the year-over-year figure.

On a monthly basis, the CPI rose 0.6 percent in July, following a 0.1 percent gain in June, largely a result of higher monthly prices for travel tours, with July being a peak travel month.

On a seasonally adjusted monthly basis, the CPI rose 0.5 percent, Statistics Canada said.