Canada Inflation June 2018


Canada: Inflation hits six-year high in June

July 20, 2018

Seasonally-adjusted consumer prices rose 0.1% from a month earlier in June, matching May’s increase. According to Statistics Canada, the rise was driven by higher food and shelter prices. On the other hand, utilities prices fell.

Inflation jumped to a six-year high of 2.5% in June (May: 2.2%), a notch above market expectations. June’s reading saw higher prices across nearly all categories and was driven by the faster rise of fuel costs. Meanwhile, annual average inflation ticked up to 1.9%, the highest level in three years, from 1.8% in May. Core inflation, which excludes volatile items including fuels and fresh produce, was stable from May at 1.3%.

Canada Inflation Forecast

In its July monetary policy report, the Bank of Canada forecast inflation averaging 2.4% in 2018 and 2.2% in 2019. FocusEconomics Consensus Forecast analysts see inflation averaging 2.2% in 2018, which is up 0.1 percentage points from last month’s forecast. For 2019, our panelists see inflation averaging 2.0%.


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Canada Inflation Chart

Canada Inflation June 2018

Note: Year-on-year and month-on-month variation of seasonally-adjusted consumer price index in %.
Source: Statistics Canada (SC).

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