Canada: Inflation eases in July
August 19, 2020
Consumer prices decreased 0.07% from a month earlier on a seasonally-adjusted basis in July, contrasting the 0.96% rise in June. According to Statistics Canada, a steep fall in recreation and education costs drove month-on-month dip in July, while transportation prices also fell slightly.
Inflation decreased to 0.2% in July (June: 0.7%). The print missed market analysts’ expectations of a 0.5% reading, and was well below the Central Bank’s 1.0%–3.0% target range. Meanwhile, annual average inflation ticked down to 1.3% in July from 1.5% the month prior.
Author: Steven Burke, Economist