Canada: Inflation slows in July
August 19, 2016
In July, seasonally-adjusted consumer prices recorded flat growth, which was down from a the 0.2% increase recorded in June. According to Statistics Canada, prices in six five of the eight components categories that compose of the index increased over the previous month, with the recreation, education and shelter and food categoriesreading categoriesprices registering the largest changegains. These increases were offset by lower prices for the transportation and clothing categories.Prices for transportation, which includes gasoline, and prices for clothing and footwear declined in July.
Inflation was fell to 1.3% in July, down from 1.5% in June. July’s result was marginally below market expectations of 1.4% and remains within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in July was level with matched June’s tally of at 1.4%—the highest reading since July 2015. Core inflation, which excludes volatile items such as gasoline and fresh food, also remained unchanged at June’s 2.1% in July.
Author: Luis Lopez Vivas, Economist