Energy costs drive highest consumer price growth in 6 years

Canadian households were under greater pressure in June as the Consumer Price Index gained 2.5% year-over-year.

The rise, up from 2.2% in May, was the largest since February 2012 according to Statistics Canada.

The transportation index was the largest contributor to the year-over-year CPI increase (rising 6.6% year-over-year).

Energy costs were up 12.4% year-over-year with gasoline prices up 24.6% and fuel oils and other fuels up 25.9%; both larger year-over-year increases than in May.

The homeowners' replacement cost index increased less on a year-over-year basis in June (+1.4%) than in May (+2.0%); and there were year-over-year decreases in CPI rises for services.

Mortgage interest costs were up 4.5% year-over-year and were among the 6 main contributors of the annual increase listed by StatsCan.

Prices rose more in six provinces in June on a year-over-year basis compared with the previous month. This growth was strongest in Prince Edward Island, where prices increased 2.9%.