Food prices climb, cellphone bills drop: 5 things to know about the June inflation data

financialpost.com:

The rise in consumer prices cooled to 2.8 per cent in June, Statistics Canada reported on July 18, slightly below consensus expectations and the slowest pace since March 2021. While within the Bank of Canada’s target range, some costs are still putting a strain on Canadians’ wallets. Here are five things in the inflation data that you should know about:

Grocery prices continue to put upward pressure on the consumer price index, remaining one of the largest contributors to the all-items CPI. The 9.1 per cent year-over-year jump in June, although nearly unchanged from the increase in May, leaves a tricky balancing challenge ahead for the Bank of Canada.

Statistics Canada said meat prices were up 6.9 per cent and were one of the main upward contributors to the 12-month change in CPI. Prices for bakery products were also up 12.9 per cent, dairy products were up 7.4 per cent and other food preparations were up 10.2 per cent.

The price of fresh fruit grew at an annual pace of 10.4 per cent in June, partly driven by a 30 per cent month-over-month jump in the price of grapes. Food purchased from restaurants remained an upward contributor to the headline CPI increase with a 6.6 per cent 12-month change.

Mortgage interest costs surged 30.1 per cent in June, up slightly from last month’s 29.9 per cent increase, driving a large part of the headline CPI increase. This marks the 12th consecutive month of rising mortgage interest expenses, the sixth consecutive month where year-over-year increases have exceeded 20 per cent and the fourth consecutive record increase. Following Canada’s sharply rising policy interest rate over the past year, mortgage rates have reached their highest levels since early 2009. For prospective homebuyers,