Canada Inflation Rate Slows to 2% in June

The annual inflation rate in Canada decreased to 2 percent in June of 2019 from 2.4 percent in the previous month and in line with market expectations, as cost slowed for shelter and transportation and energy prices fell further. Excluding energy, the inflation dropped to 2.6 percent in June from 2.7 percent in May.
Statistics Canada | Agna Gabriel | 7/17/2019 1:03:12 PM
Year-on-year, cost slowed for shelter (2.5 percent from 2.7 percent in May); transportation (1.6 percent from 3.1 percent); clothing and footwear (1.6 percent from 3.1 percent) and alcoholic beverages and tobacco (1.4 percent from 2.1 percent). Meantime, inflation was steady for food (at 3.5 percent), with prices of fresh vegetables rising 17.3 percent, the most since January 2016 due to inclement weather in agricultural regions; and health and personal care (at 1.1 percent). 

Regarding special aggregates of the CPI, energy prices fell 4.1 percent from a year earlier in June, following a 0.1 percent decrease in May, as consumers paid less for gasoline (-9.2 percent) and fuel oil and other fuels (-4.1 percent). This was due in part to falling oil prices amid rising fuel inventories in the United States and the elimination of carbon pricing in Alberta at the end of May. Also, cost of goods went up 0.9 percent, after a 1.9 percent gain while services inflation rose to 2.8 percent from 2.7 percent in the prior month. 

Among the provinces, energy prices fell the most year over year in Alberta (-8.4 percent) in June.

On a monthly basis, consumer prices went down 0.2 percent, after a 0.4 percent gain in May and also matching market consensus.

The BoC's annual core inflation, which excludes volatile items, edged down to 2 percent from 2.1 percent in May and well below market forecasts of 2.6 percent. 

Canada Inflation Rate Slows to 2% in June