Canada Inflation Rate at 7-Month High

Consumer prices in Canada increased 1.3 percent year-on-year in July, slightly below market expectations but up from a 1 percent rise in June. Yet, it is the biggest rate so far this year, boosted by higher cost of food, cars and clothing while gasoline prices fell at a slower pace.
Statistics Canada | Joana Taborda | 8/21/2015 1:47:06 PM
Food prices advanced 3.2 percent in the 12 months to July, following a 3.4 percent increase the previous month, led by meat prices, which rose 6.1 percent, following a 6.6 percent increase in June. Additionally, prices were up for fresh vegetables and fresh fruit. Prices for food purchased from restaurants rose 2.7 percent in the 12 months to July and prices for food purchased from stores were up 3.5 percent.

The clothing and footwear index increased 1.3 percent in the 12 months to July, after rising 0.3 percent the previous month. This acceleration was led by women's clothing, which increased 1.2 percent after decreasing 1.1 percent in June. In addition, the indexes for children's clothing and men's clothing posted larger year-over-year gains in July than in June.

The transportation index declined 1.7 percent in the 12 months to July, after falling 2.6 percent in June. This smaller year-over-year decrease was mainly attributable to gasoline prices, which fell less in the 12 months to July than they did the previous month. Prices for the purchase of passenger vehicles increased 2.5 percent year over year in July, after posting a 2.0 percent rise the previous month.

Annual core inflation accelerated to 2.4 percent from 2.3 percent in June.

On a monthly basis, consumer prices rose 0.1 percent, slowing from a 0.2 percent increase in the previous period. 

Canada Inflation Rate at 7-Month High