Canadian Inflation Rate Up to 12-Month High in July

In July of 2013, Canadian inflation rate rose 1.3 percent, from 1.2 percent increase in June, led by transportation prices. In addition to transportation, the shelter component was a main upward contributor to the increase in the CPI in July. At the same time, the food index posted its smallest year-over-year increase in over three years.
Statistics Canada | Joana Taborda | 8/23/2013 1:43:58 PM
Compared with July last year, consumers paid 6.1 percent more for gasoline. This followed a 4.6 percent increase in June. 

Transportation prices rose 2.7 percent on a year-over-year basis, following a 2.0 percent gain in June.

Prices for the purchase of passenger vehicles rose 2.0 percent in the 12 months to July, matching the increase in June.

Shelter costs rose 1.3 percent in the 12 months to July, after increasing 1.2 percent in June. Compared with July last year, natural gas prices and rent increased, while mortgage interest cost declined 3.8 percent.

Food prices rose 0.8 percent in the 12 months to July, following a 1.2 percent advance in June. The July increase was the smallest gain in food prices since June of 2010. The cost of food purchased from stores rose 0.5 percent in the 12 months to July, a smaller increase than in June (+1.3 percent). Prices for fresh fruit, fresh vegetables and meat all increased less in July compared with June.

Conversely, prices for food purchased from restaurants advanced 1.5 percent on a year-over-year basis in July, following a 1.1 percent increase in June.

The health and personal care component decreased on a year-over-year basis for the fourth consecutive month in July. These declines followed more than a decade of price increases. The recent declines are mainly attributable to falling prices for prescribed medicines.

On a month-over-month basis, inflation rate was recorded at 0.1 percent in July, from 0 percent in June.

Canadian Inflation Rate Up to 12-Month High in July