Inflation in Canada falls to 1.3 percent in July

By anna smith

Statistics Canada reported that Canada’s annual inflation rate fell to 1.3 percent last month as consumers paid less for gasoline. This statistic is down from 1.5 percent in June. Economists predicted that the inflation rate would ease to 1.4 percent.

Pump prices experienced a 12 month drop to 14 percent, falling by 5.6 percent. Fuel oil and natural gas prices also fell – they were down by double digits from a year earlier.

The data agency found that consumers spent more for food and shelter, although pump prices fell by 5.6 percent in July. Compared to July 2015, Canadians paid 10.3 percent more for fresh or frozen fish last month.

The core rate of inflation (which excludes volatile factors like fresh) stayed the same from June at 2.1 percent. Consumer prices increased less in July than in June in seven provinces. On an annual basis, the consumer price index increased in Brunswick (by 2.5 percent) and in Newfoundland and Labrador (by 3.4 percent) as both provinces increased the provincial portion of the HST on 1 July by 2 percent.

"Markets may be worrying about Canada's economic growth performance, but underlying inflation certainly isn't raising any eyebrows," noted TD economist Leslie Preston in a commentary. 

Follow @BizReviewCANADA

Read the August 2016 issue of Business Review USA & Canada magazine




Featured Articles

Amelia DeLuca, CSO at Delta Air Lines on Female Leadership

Driving decarbonisation at Delta Air Lines, Chief Sustainability Officer Amelia DeLuca discusses the rise of the CSO and value of more women in leadership

Liz Elting – Driving Equality & Building Billion-$ Business

Founder and CEO Liz Elting Turned Her Passion into Purpose and Created a Billion-Dollar Business While Fighting for Workplace Equality – and Winning

JPMorgan Chase: Committed to supporting the next generation

JPMorgan has unveiled a host of new and expanded philanthropic activities totalling US$3.5 million to support the development of apprenticeship programmes

How efficient digital ecosystems became business critical

Technology & AI

Mastercard: Supporting clients at a time of rapid evolution

Digital Strategy

Why Ceridian has boldly rebranded to Dayforce

Human Capital