Canada’s Consumer Price Index (CPI) grew by approximately 3% year-on-year in July, according to figures released moments ago, compared to 2.8% in June. The core CPI, which excludes gasoline prices, rose to 2.0% year-on-year, compared to 2.0% in June, marking its third consecutive monthly increase.

On a monthly basis, the index rose by 0.5% in July, following a decline of approximately 0.4% in June, exceeding expectations of a 0.4% increase.

The largest contributor to the inflation increase in July came from the energy sector, where gasoline prices rose by 25.7% year-on-year, following a 20.5% increase in June. Transportation costs also rose by 12%.