Canada: Inflation inches up in June
July 17, 2015
In June, seasonally-adjusted growth in consumer prices over the previous month matched last month’s reading of 0.4%, maintaining the highest figure since February 2013. According to Statistics Canada, seven of the eight components of the index increased. The largest increase was recorded in the transportation sub-index, which was driven by a strong increase in the gasoline component of the sub-index.
Annual headline inflation inched up from May’s reading of 0.9% to 1.0% in June, meeting market expectations. As a result, inflation has moved back into the target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in June came in at 1.5%, which was slightly below May’s reading of 1.6%. Annual core inflation, which excludes volatile items such as gasoline and fresh food, inched up from 2.2% in May to 2.3% in June.
Author: Robert Hill, Economist