July 20, 2023
SUMMARY
Headline inflation in Ontario fell from 3.1% to 2.6%. Core inflation also saw a meaningful drop, decreasing from 3.9% to 3.2%. Prices for Cement, glass, and non-metallic mineral products remain elevated. Year-over-year inflation for Energy and petroleum products and Lumber and other wood products continues to fall significantly, however the decrease in Lumber was lower than in previous months. Fabricated metal and construction materials price index fell for the 4th month in a row.
ONTARIO CONSUMER PRICE INDEX
In Ontario, year-over-year headline inflation fell from 3.1% in May to 2.6% in June. This is partly due to June 2022 being a record year for headline inflation and partly due to energy prices falling. Energy price inflation fell for the 4th consecutive month, down 14.4% year-over-year (the largest decrease since May 2020, when energy prices fell 20.6%). Core inflation decreased by a slightly larger amount, down from 3.9% to 3.2% (almost a 2-year low). This decrease was in part thanks to slowing services inflation (down to 3.8% from 4.5%), which is now the lowest in over a year.
INDUSTRIAL PRODUCT AND RAW MATERIAL PRICE INDEX
Decreasing Prices
Energy and petroleum product prices declined -33.3% from a year ago, making this the 4th consecutive decrease in year-over-year prices in this category. Prices for Lumber and other wood products decreased 19.8% annually, marking the 8th consecutive drop in this index. This was a smaller decrease than the 34.1% year-over-year decline experienced in May. Fabricated metal and construction materials prices declined for their 4th consecutive month, dropping 3.6% from June 2022 levels.
Slowing Prices
Packaging materials and containers price inflation slowed once again, down from the 4.5% annual increase in May, to 3.5% in June.
Elevated Prices
Cement, glass, and other non-metallic mineral product prices remain elevated, with a 14.2% increase from year ago levels. This is little changed from May (+14.6%).
Note: some of the numbers reported in the last price index bulletin have changed due to revisions by Statistics Canada.
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FOR MORE INFORMATION, CONTACT:
Ali Ahmad
Research Analyst
Ontario Construction Secretariat (OCS)
180 Attwell Drive, Suite 360, Toronto, ON M9W 6A9
P 416.620.5210 ext. 222
aahmad@iciconstruction.com
