Canada's Inflation Down to 1.3% in July

Canada Consumer prices rose 1.3% in the 12 months to July, following a 1.5% gain in June. Higher prices for the purchase of passenger vehicles, food purchased from restaurants, meat and electricity were major factors in the increase of the July Consumer Price Index (CPI)., Statistics Canada 8/17/2012 2:46:24 PM
Food prices rose 2.1% in the 12 months to July following a 2.0% advance in June. These two increases were the lowest year-over-year gains in food prices since the beginning of 2011. Shelter costs rose 1.0% in the 12 months to July after increasing 1.3% the previous month. Increases for electricity prices, homeowner's replacement cost, and rent were major factors leading to the July rise in shelter costs. Natural gas prices continued to fall on a year-over-year basis. Higher costs for telephone services and financial services led to year-over-year price gains for the household operations, furnishings and equipment component. Prices for transportation rose 1.1% on a year-over-year basis in July after increasing 1.7% in June. The cost for the purchase of passenger vehicles increased 2.3% in July, following a 3.9% rise the previous month. The only major component which declined in the 12 months to July was clothing and footwear (-0.7%), led by price declines for women's clothing.