Canada: Inflation jumps to 3.0% in July
Seasonally-adjusted consumer prices rose 0.5% from a month earlier in July, faster than June’s revised 0.2% increase (previously reported: +0.1% month-on-month s.a.). According to Statistics Canada, the rise was driven by higher transport and shelter prices. On the other hand, the rise in food prices moderated in the month.
Inflation jumped to a seven-year high of 3.0% in July (June: 2.5%), well above market expectations. July’s reading saw higher prices across all categories and was driven by the faster rise of fuel costs. Meanwhile, annual average inflation ticked up to 2.0%, the highest level in nearly four years, from 1.9% in June. Core inflation, which excludes volatile items including fuels and fresh produce, jumped to 1.6% from 1.3% in June.