The Consumer Price Index rose by 1.3% in July compared with July 2015, down from the annualized increase of 1.5% in June.
The CPI in July for goods was up 0.3% from a year earlier while the CPI for services rose 2.1%.
Gasoline prices in July were down 14.0% from July 2015, after dropping 8.5% in June. Overall, energy prices declined 7.4% between July 2015 and July 2016, following a 4.4% annualized rate of decrease in June. Excluding energy, the annualized Consumer Price Index rose 1.9% in July, after a year-over-year increase of 2.0% in June.
Food prices rose 1.6% in the 12 months to July, following the 1.3% rate of annualized increase posted in June. The cost of food purchased from stores in the 12 months to July grew by 1.1%, up from a 0.8% increase in June. Prices for beef and fish products contributed the most to the increase. In contrast, the prices of fresh fruits and vegetables posted smaller year-over-year gains in July than in June.
Costs associated with shelter rose 1.6% in July over July 2015, unchanged from the rate of annualized gain in June.
Consumers paid 1.8% more for household operations, furnishings and equipment in July compared to July 2015, up from the 0.1% year-over-year decrease recorded in June.
Transportation prices decreased 0.2% in the 12 months to July 2016, after an annualized growth rate of 1.1% in June. The purchase of passenger vehicles index rose 5.4% in the 12 months to July 2016 following a 5.6% increase in June. The city bus and subway transportation index rose 2.1% in July over June.
In the 12 months to July 2016, consumer prices rose in all ten provinces. The CPI grew the most in Newfoundland and Labrador (+3.4%), followed by New Brunswick (+2.5%) and British Columbia (+2.1%). The lowest annualized increase occurred in Quebec (+0.2%). Consumer prices in Ontario were 1.5% higher than in July 2015.