Canada's Inflation Rate Slows in June


Canada's consumer prices rose 3.1% in the 12 months to June, primarily the result of higher prices for gasoline and food purchased from stores. This follows a 3.7% increase posted in May.

The 0.6 percentage point difference between the year-over-year increases posted in June and May was largely the result of lower prices for the purchase of passenger vehicles and traveller accommodation. In particular, prices for the purchase of passenger vehicles fell 3.1% in the 12 months to June, following a 0.7% increase in May. The smaller year-over-year increase in gasoline prices in June compared with May was also a factor.

Prices for food purchased from stores rose 4.8% in the 12 months to June after increasing 4.2% in May.

Energy prices advanced 15.7% during the 12 months to June, following a 16.6% increase in May. On a year-over-year basis, gasoline prices rose 28.5%, slightly less than the 29.5% gain in May. Prices for fuel oil and electricity also rose, while natural gas prices fell 4.6%.

Excluding food and energy, the Consumer Price Index (CPI) increased 1.4% in the 12 months to June.


TradingEconomics.com, Statistics Canada
7/22/2011 12:12:52 PM