CPI through 2026-06
Gasoline is not the only story,
Headline
Most of us have started to take the volatility of fossil fuel (gasoline) prices in stride since the start of Trump’s war of choice. The energy action has been significant.
Whether the diplomatic talks matter for long-term planning is a question. The detailed charts shows a 6-month window which highlight the recent change as only slightly more than 10 points. Starting points matter.
Luckily, the demands associated with World Cup travel are not a long-term demand factor.
Food from stores
Food from stores is always an issue. My recent substack indicates the supply factors that dominate food production.
The impact of domestic fruit and vegetables is critical in season.
Energy costs are important but not critical to food costs. Distribution margins are a bigger issues that should be amenable to policy action. Statistics Canada has a nice display as part of their food prices hub which indicate that grocers’ margins has rise11.2% in annual terms by May 2026.
The chart below shows the significant increase in grocery store margins.
We do not have enough competition. Retailers are riding the price increases up to the detriment of consumers.
Regional issues
Some regional differences are explained by the shelter market which is local. Rental price change is broadly higher in Atlantic Canada (p80).
Detailed Charts
AI not used. Charts and interpretation are the responsibility of Paul Jacobson.