Canada: Inflation falls to a nearly two-year low in June
July 21, 2017
Seasonally-adjusted consumer prices were flat in June from a month earlier, contrasting May’s 0.2% fall and coming in just above the 0.1% decline expected by market analysts. According to Statistics Canada, the null print was the result of a sharp decline in transportation prices being largely offset by a jump in food, alcohol and tobacco prices. Meanwhile, the remaining five subcomponents of the index posted more moderate gains.
Inflation fell to 1.0% in June from 1.3% in May, landing just within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Meanwhile, annual average inflation was also stable at 1.5% for a fifth consecutive month in June. Core inflation, which excludes volatile items including gasoline and fresh food, was stable at 0.9% in June from a month earlier.
Author: Christopher Thomas, Economist