Canada: Inflation stable in June
July 22, 2016
Seasonally-adjusted consumer prices recorded a 0.2% increase in June over the previous month, matching May’s reading. According to Statistics Canada, prices in five of the eight components of the index increased over the previous month, while prices for food and for alcoholic beverages and tobacco products decreased. Prices for recreation, education and reading registered no change.
Inflation was 1.5% in June, which was level with May’s reading. June’s result was marginally above 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 June was also level with May’s tally of 1.4%—the highest reading since July 2015. Core inflation, which excludes volatile items such as gasoline and fresh food, also remained unchanged at May’s 2.1% in June.
Author: Robert Hill, Economist