Canada: Inflation inches up in July
August 21, 2015
In July, seasonally-adjusted growth in consumer prices came in at 0.2% over the previous month, falling from 0.4% in June. According to Statistics Canada, six of the eight components of the index increased. The largest increase was recorded in the clothing and footwear index.
Inflation inched up from June’s reading of 1.0% to 1.3% in July, coming in slightly below market expectations of 1.4%. As a result, inflation has moved further into the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in July came in at 1.4%, which was slightly below June’s reading of 1.5%. Annual core inflation, which excludes volatile items such as gasoline and fresh food, inched up from 2.3% in June to 2.4% in July.
Author: Robert Hill, Economist