Canada Inflation


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.

The Bank of Canada expects headline inflation to close 2015 and 2016 at 1.4% and 1.9%, respectively, according to its July Monetary Policy Report. FocusEconomics Consensus Forecast panelists expect inflation to average 1.0% in 2015, which is up 0.1 percentage points from the previous month’s forecast. The panel expects inflation to average 2.1% in 2016.

Author:, Economist

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Canada Inflation Chart

Canada Inflation June 2015

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

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