New data from Statistics Canada’s Consumer Price Index released on August 16 indicates that Canada’s inflation rate has seen its first monthly decline in a year, and food inflation also appears to be waning .
Inflation slowed to 7.6% in July, mainly due to lower gasoline prices.
The rate of change had hit a nearly 40-year high of 8.1% in June, but economists widely expected it to slow. That turned out to be the case, as in its latest Consumer Price Index report, Statistics Canada said July’s rise was the smallest monthly gain since December 2021 and was the first decline in year-on-year inflation since June 2020.
Canada’s food inflation rate for July was 9.2%, down from June. In restaurants, the inflation rate for food was 7.3%, which effectively represents stability compared to last month.
Although these figures do not represent a considerable improvement, they do at least show that the torrid pace of inflation has subsided after months of high growth for decades.
However, food prices in grocery stores continue to rise. CTV News reports that the 9.9 percent retail food inflation rate is the fastest rate of increase since August 1981. Last month, that figure was 9.4 percent. This was led by bakery products (up 13.6% YoY), eggs (up 15.8% YoY), fresh fruits up (11.7% YoY ) and other key food groups, including dairy.
RELATED: Rising Food Prices: Inflation or ‘Greed’?
Although there have been accusations of corporate ‘greed’, many factors are still at play in the ongoing food inflation, including continued supply chain disruptions and the conflict in Ukraine.
Still, overall, there are some signs that inflation is beginning to subside. The inflation rate in the United States also fell in July.
This will bring a little relief to restaurants and consumers. Diners ranked inflation before COVID-19 as their top restaurant dining concern.