Canada's Annual Inflation Up to 1.5% in June


Canada's consumer prices rose 1.5% in the 12 months to June, following a 1.2% gain in May. The increase in the Consumer Price Index (CPI) was led by higher prices for the purchase of passenger vehicles and, to a lesser extent, for electricity.

Prices for the purchase of passenger vehicles increased 3.9% year over year in June, after rising 1.7% the previous month. The June increase was the result of less discounting by manufacturers compared with June 2011.

The cost of electricity rose 5.9% year over year in June, mostly as a result of increases in Ontario, Alberta and British Columbia.

Despite the increase in electricity prices, the energy index declined 0.8% in the 12 months to June, following a 1.6% decrease in May. Gasoline prices fell 1.8% after declining 2.3% in May. Prices for natural gas also declined in the 12 months to June, although at a slower rate than in the previous month.

Excluding energy, the CPI increased 1.7% in the 12 months to June. While this matched the year-over-year change recorded in May, the CPI excluding energy continued to increase at a faster rate than the All-items CPI.


TradingEconomics.com, Statistics Canada
7/20/2012 2:07:32 PM