Canada's Inflation Rate Eases in July

Canada's consumer prices rose 2.7% in the 12 months to July, primarily the result of higher prices for gasoline and food purchased from stores. This follows a 3.1% increase in June and a 3.7% advance in May., Statistics Canada 8/19/2011 11:58:46 AM

On July 1, 2010, the Harmonized Sales Tax (HST) came into effect in Ontario and British Columbia. As well, Nova Scotia increased its HST by two percentage points. July 2011 marks the first month for which the calculation for the 12-month rate of change in consumer prices compares two months which both include the July 2010 tax changes.

Energy prices advanced 12.9% during the 12 months to July, following a 15.7% increase in June. On a year-over-year basis, gasoline prices rose 23.5%, compared with the 28.5% gain in June. In contrast, natural gas prices fell.

Food prices rose 4.3% in the 12 months to July, matching the increase in June.

Excluding food and energy, the Consumer Price Index (CPI) increased 1.2% in the 12 months to July, after advancing 1.4% in June.

On a seasonally adjusted monthly basis, consumer prices increased 0.1% from June to July, following a 0.3% decrease from May to June. The transportation index, which includes gasoline, remained unchanged following a 2.4% decline in June.