Canada Inflation Rate Rises Further


Canadian consumer prices rose 2.4 percent year-on-year in June, following a 2.3 percent increase in the previous month. While prices increased in all major components, cost of shelter, food and transportation contributed the most to the rise.

Shelter costs rose 2.9 percent on a year-over-year basis in June, following a 3.4 percent increase in May. Consumers paid more for natural gas and property taxes in June compared with the same month a year earlier. Prices for electricity rose 4.2 percent in the 12 months to June, a slower increase than in May (+7.0 percent).

Food prices increased 2.9 percent in the 12 months to June, after advancing 2.3 percent in May. Prices for food purchased from stores rose 3.2 percent year over year in June, following a 2.5 percent gain the previous month. Consumers paid 9.4 percent more for meat and 9.5 percent more for fresh vegetables. Prices for food purchased from restaurants increased 2.3 percent on a year-over-year basis.

The transportation index increased 2.2 percent year over year in June, following a 2.7 percent rise in May. Gasoline prices advanced 5.4 percent in the 12 months to June, after increasing 6.3 percent in May. As well, prices for the purchase of passenger vehicles rose 1.6 percent on a year-over-year basis, following a 2.0 percent increase the previous month.

Prices for clothing and footwear rose 1.6 percent in the 12 months to June, after posting a 0.6 percent gain in May. This faster increase was largely attributable to fewer discounts observed this June compared with the same month a year ago.

The index for alcoholic beverages and tobacco products increased 4.1 percent in the 12 months to June. This rise was mainly attributable to a 10.3 percent year-over-year advance in cigarette prices. Quebec's tobacco tax increased in June. Previously in 2014, the federal excise tax on tobacco, as well as the tobacco taxes in Newfoundland and Labrador, Ontario and British Columbia increased.

On a monthly basis, the inflation rate slowed to 0.1 percent in June from 0.5 percent in May.

Canada Inflation Rate Rises Further


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
7/18/2014 1:41:40 PM