EDITORIAL: Our cost of living is still in crisis
That means there's little relief in sight for the cost-of-living crisis facing many Canadian families.
What kept the so-called 'headline' inflation rate to 1.7%, Statistics Canada reported, was the continuing effect of Prime Minister Mark Carney dropping the consumer carbon tax to 0% in March, significantly decreasing gasoline prices.
As the federal agency reported, the falling price of gasoline — by 16.1% year over year in July, following a 13.4% decline in June — 'continued to reflect the removal of the consumer carbon levy.'
Excluding gasoline, the inflation rate rose 2.5% in July, matching the increases in May and June.
So, it's good news for consumers that Conservative Leader Pierre Poilievre and the Tories eventually pressured Carney and the Liberals to eliminate the consumer carbon tax.
But increases in the cost of food and shelter are both major concerns.
The cost of groceries (meaning food purchased from stores) rose at a faster annual pace in July (3.4%) than in June (2.8%) and at twice the headline inflation rate of 1.7%.
As of July 2025, Statistics Canada reported, Canadian families were paying 27.1% more for groceries than they were in July 2020.
Meanwhile, the cost of shelter rose by 3% in July year over year, up from a 2.9% increase in June, 'the first acceleration in shelter prices since February 2024.'
The cost of rent also rose at a faster pace year over year — up 5.1% in July following a 4.7% increase in June.
Those numbers would have been even worse were it not for slower growth in mortgage interest costs, which rose 4.8% year over year in July compared to 5.6% in June; they've been declining on a year-over-year basis since September 2023.
While the inflation rate is influenced by many factors — including ones beyond the federal government's control — July's inflation numbers are even more reason for the Carney government to be laser-focused on making life more affordable for Canadians when Parliament resumes in the fall.
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