Canada Inflation Rate Slows to 4-Month Low of 1.3%

Consumer prices in Canada increased 1.3 percent year-on-year in July of 2016, easing from a 1.5 percent rise in the previous two months and in line with market expectations. It is the lowest figure in four months as gasoline prices fell while food inflation accelerated.
Statistics Canada | Joana Taborda | 8/19/2016 1:46:34 PM
Year-on-year, the transportation index was down 0.2 percent after rising 1.1 percent in June. Gasoline prices declined more (-14.0 percent) than in June (-8.5 percent). The purchase of passenger vehicles index (+5.4 percent) and the city bus and subway transportation index (+2.1 percent) rose less. Excluding gasoline, inflation came in at 1.9 percent, the same as in June.

The clothing and footwear index decreased 0.4 percent, after posting a 1.2 percent gain in June. This turnaround was partly attributable to a decline in the women's clothing (-0.4 percent), following an increase in June (+2.2 percent). Shoppers also paid less for children's clothing and men's clothing.

In contrast, food prices were up 1.6 percent, after rising 1.3 percent in June. Prices for food purchased in stores increased 1.1 percent, following a 0.8 percent gain the previous month. After registering a 0.3 percent decline in June, meat prices were up 1.1 percent. In addition, the fresh or frozen fish index posted its largest year-over-year increase since April 2014. By contrast, the fresh fruit and fresh vegetables indexes recorded smaller gains in July than in the previous month.

The recreation, education and reading index increased 1.9 percent, following a 1.3 percent gain in June. Consumers paid 5.0 percent more for video and audio subscription services. The travel tours index rose 0.4 percent, after declining 3.4 percent the previous month.

On a monthly basis, consumer prices fell 0.2 percent after rising 0.2 percent in June, dragged down by a 5.6 percent decline in gasoline prices.

Excluding food and energy, consumer prices were down 0.1 percent on the month, following a 0.2 percent rise in June. Year-on-year, prices rose 2.1 percent, the same as in the previous month. 

Canada Inflation Rate Slows to 4-Month Low of 1.3%