Canada’s underlying inflation pressures continued to cool in June, with median CPI slowing to 1.9% year-over-year, down from 2.1% in May 2026. The latest reading, updated on 20 July 2026, places this key core inflation measure just under the Bank of Canada’s 2% target.
Both figures are calculated on a year-over-year basis, comparing each month to the same month a year earlier. In May 2026, median CPI had been running at 2.1% compared with May 2025; in June 2026, it eased further when measured against June 2025. The back-to-back moderation suggests that underlying price pressures are gradually losing momentum.
The median CPI is closely watched by markets and policymakers as it trims out extreme price movements to give a clearer view of core inflation trends. The move from 2.1% to 1.9% over consecutive months reinforces the picture of a disinflationary environment in Canada as mid-2026 unfolds.
