Canada’s Consumer Price Index (CPI) rose 3.7 percent year over year in July, up from a 3.1 percent gain in June. Excluding gasoline, the CPI increased 2.8 percent year over year.

Monthly, the CPI rose 0.6 percent in July, the fastest pace since January 2021. On a seasonally adjusted monthly basis, the CPI was up 0.5 percent.

"Prices rose at a faster pace year over year in six of the eight major components in July, with shelter prices contributing the most to the all-items increase," according to StatCan. "Conversely, prices for clothing and footwear as well as alcoholic beverages, tobacco products and recreational cannabis slowed on a year-over-year basis in July compared with June."

Year over year, gasoline prices rose 30.9 percent in July, compared to 32.0 percent in June. A base-year effect continued to impact the gasoline index, as prices in July 2020 increased 4.4 percent on a month-over-month basis when "many businesses and services reopened."

In July 2021, gasoline prices increased 3.5 percent month over month, as oil production by OPEC+ remained below pre-pandemic levels though global demand increased.

"The homeowners' replacement cost index, which is related to the price of new homes, continued to trend upward, rising 13.8 percent year over year in July, the largest yearly increase since October 1987," wrote StatCan. "Similarly, the other owned accommodation expenses index, which includes commission fees on the sale of real estate, was up 13.4 percent year over year in July."

Year-over-year price growth for goods also rose faster in July at 5.0 percent than in June at 4.5 percent. Durable goods accelerated the most at 5.0 percent.

"The purchase of passenger vehicles index contributed the most to the increase, rising 5.5 percent year over year in July," wrote StatCan, adding, "The gain was partially attributable to the global shortage of semiconductor chips."

Prices for upholstered furniture rose 13.4 percent year over year in July, primarily due to lower supply and higher input costs. "The introduction of tariffs on upholstered furniture, first implemented in early May 2021, may also have contributed to the increase," according to StatCan.

The video equipment index was also up 4.8 percent year over year, mainly driven by higher prices for televisions.