Travel gets pricier: tour costs surge 15.2%, airfares jump 12% in July, says StatCan

Canadian travellers faced steeper costs in July as prices for travel tours and air transportation posted double-digit year-over-year increases, according to the latest Consumer Price Index (CPI) data from Statistics Canada.

Prices for travel tours rose 15.2 per cent year over year in July, accelerating sharply from a 6.8 per cent increase in June.

Statistics Canada attributed the increase in part to higher prices for hotels and flights to U.S. destination cities, coinciding with the hosting of World Cup matches.

Air transportation also became more expensive, with prices climbing 12.0 per cent compared with July 2025. That followed a 9.6 per cent year-over-year increase in June, with higher jet fuel costs contributing to the increase.

The figures point to growing cost pressures for Canadians travelling during the peak summer season, particularly those booking flights and packaged travel. 

Airfare prices, for one, are rising as the ongoing conflict in the Middle East disrupts oil supplies and forces airlines to navigate around key airspace closures.

Inflation rises across most provinces

The travel increases came as consumer prices accelerated in nearly every province in July.

Year-over-year inflation rose at a faster pace in all provinces compared with June, with Ontario the lone exception, reports StatCan. 

Ontario's annual inflation rate held steady at 2.0 per cent, the lowest increase among the provinces. Statistics Canada said declines in homeowners' replacement costs, down 4.6 per cent, and natural gas prices, down 18.7 per cent, contributed to the province's comparatively lower inflation rate.

Nova Scotia recorded the highest provincial inflation rate at 5.0 per cent. The increase was driven in part by electricity prices, which rose 3.3 per cent, and rents, which climbed 8.7 per cent year over year.

In New Brunswick, accelerating inflation was led by higher electricity and traveller accommodation prices. Electricity rose 4.4 per cent year over year, while traveller accommodation increased 4.5 per cent.

The CPI, overall, rose 3.0 per cent year over year in July, up from a 2.8 per cent increase in June, StatCan reports. 

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