Canada: Inflation edges up in July from June's nearly two-year low
August 18, 2017
Seasonally-adjusted consumer prices rose 0.2% in July following June’s flat print. According to Statistics Canada, the rise was driven by higher prices for clothing and footwear, and partially offset by lower prices for household operations, furnishing and equipment. Meanwhile, four other major subcomponents of the index posted more moderate gains.
Inflation was 1.2% in July, up from 1.0% in June and within the Bank of Canada’s target range of 2.0% plus or minus 1.0 percentage point. Meanwhile, annual average inflation was stable at 1.5% for a sixth consecutive month in July. Core inflation, which excludes volatile items including gasoline and fresh food, was stable at 0.9% in July from a month earlier.
Author: Lindsey Ice, Economist