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Inflation moves within Bank of Canada's target range

Canadians still paid more for groceries and mortgage insurance costs, but Canada's inflation fell within the range of the Bank of Canada's target in June.

According to Statistics Canada's Consumer Price Index report, it was 2.8 per cent year over year.

Groceries remained one of the biggest drivers of inflation last month as prices climbed another 9.1 per cent from one year ago. The increase is virtually unchanged from May.

If you bought meat, you paid 6.9 per cent more. Bakery goods and dairy rose by 12.9 per cent and 7.4 per cent. The cost of fresh fruit jumped 10.4 per cent after grapes skyrocketed 30 per cent from May.

Following repeated increases in the Bank of Canada rate, but excluding the latest quarter percentage point rise, the cost of mortgage insurance jumped 30.1 per cent.

The price of eating in a restaurant decelerated in June from May but was still up 6.6 per cent from last year.

Without the cost of food, inflation would have risen 1.7 per cent, and 2 per cent without mortgage insurance costs.

Compared to June 2022, the cost of gas fell 21.6 per cent after May's 18.3 per cent dive. Drivers still likely remember how high gas prices were 12 months ago when global demand for crude peaked following China's decision to end COVID-19 restrictions.

Filling the gas tank cost 1.9 per cent more than in May.

The cost of cellular services fell in June by 6.8 per cent following May's 23.4 per cent drop. Internet services were down 3.2 per cent.

Those buying a new car or truck paid 2.4 per cent more, while insurance rose 5.4 per cent.

Statistics Canada plans to release the July Consumer Price Index report on August 15.

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