Canada's Inflation Rate Up to 4-Month High in June


In June of 2013, Canadian inflation rate rose 1.2 percent year-on-year, following a 0.7 percent increase in May, due to higher prices for transportation, shelter and food components.

Consumer prices rose in six of the eight major components in the 12 months to June. The exceptions were health and personal care as well as recreation, education and reading.

Transportation prices rose 2.0 percent on a year-over-year basis in June, after falling 0.5 percent in May. The acceleration was mostly attributable to prices for gasoline and for the purchase of passenger vehicles, both of which rose in the 12 months to June after declining in May.

Compared with June last year, gasoline prices were up 4.6 percent. This followed a 1.5 percent decrease in May. Prices for the purchase of passenger vehicles rose 2.0 percent in the 12 months to June, after declining 0.5 percent in May. The year-over-year increase in June was mainly attributable to smaller monthly price declines in June of 2013 compared with the same month last year.

Shelter costs rose 1.2 percent in the 12 months to June, after increasing 1.3 percent in May. Natural gas prices and rent increased on a year-over-year basis in June, while mortgage interest cost decreased 3.8 percent.

Food prices increased 1.2 percent year over year in June, following a 1.3 percent rise in May. Compared with June of 2012, consumers paid 1.3 percent more for food purchased from stores, as prices rose for fresh vegetables (+5.1 percent) and meat (+2.2 percent). In contrast, prices for sugar and confectionery declined 4.3 percent.Consumers also paid 1.1 percent more for food purchased from restaurants.

On a month-over-month basis, inflation rate was recorded at 0 percent in June, from 0.24 percent in May.

Canada


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
7/19/2013 1:51:37 PM