CANADA VIBES NEWSROOM · ÉDITION DU SOIR | EVENING EDITION
July 20, 2026 · 9:30 PM ET
Statistics Canada reports inflation eased to 2.8% in June, driven by falling gas prices, as Ottawa announced Monday a proposed agreement with Quebec to fast-track major economic projects.
Canada’s Consumer Price Index rose 2.8% year over year in June, easing from a 3.2% gain in May, Statistics Canada reported Monday.
The slowdown was driven largely by falling gasoline prices, which rose 20.5% year-over-year in June compared with 33.2% in May — a reprieve tied to a Middle East ceasefire that drove gas costs down 10.2% month-over-month. Transportation inflation eased to 6.7% from 9.0% as a result.
Grocery price increases also cooled to 3.9% from 4.3% in May, though some items kept climbing, including fresh or frozen chicken (+5.7%) and bread (+6.0%). Core inflation measures — median and trimmed-mean — fell to their lowest levels in more than five years, at 1.9% and 1.8% respectively.
On the infrastructure front, the federal government announced Monday a proposed agreement with Quebec to accelerate major economic projects in the province, aimed at boosting exports and creating well-paying jobs. A public consultation period is open from July 20 to August 10 to gather feedback on the deal, which promises to maintain environmental standards and respect Indigenous partners’ rights.
The announcement comes as Quebec’s economy shows signs of rebounding in the first quarter of 2026, following three quarters of contraction averaging about 0.5%, attributed to trade friction and U.S. tariffs on the province’s key exports.
What to watch
How the Bank of Canada — which has held its policy rate at 2.25% for six straight meetings — responds, and what feedback emerges from the Canada-Quebec consultation period.
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