Canada: Inflation returns in June, but remains below the Bank's target range
July 22, 2020
Consumer prices increased 0.96% from a month earlier on a seasonally-adjusted basis in June, stronger than the 0.15% rise in May. According to Statistics Canada, a strong rise in clothing and footwear, shelter, and transportation prices drove the month-on-month rise in June.
Consumer prices in annual terms rose 0.7% in June (May: -0.4%). The reading beat market analysts’ expectations of a 0.3% reading, but was well below the Central Bank’s 1.0%–3.0% target range. Meanwhile, annual average inflation ticked down to 1.5% in June from 1.6% the month prior.
Author: Steven Burke, Economist