Inflation In Canada’s CPI Dips To 1.3% In July
Canada’s year-on-year inflation rate rose 1.3 percent in July, down from 1.5 percent in June, Statistics Canada said Friday.
Gasoline prices fell by 5.6 percent in July, bringing their 12-month drop to 14 percent. Fuel oil and natural gas prices were also down by double digits from a year earlier.
Clothing prices fell year over year, but consumers paid more for food and shelter, the data agency said.
Canadians paid 10.3 percent more for fresh or frozen fish last month compared to July 2015. The annual gain in fish prices is the largest in more than two years.
The core rate of inflation, which strips out unpredictable elements fresh produce and fuel, was unaltered from June at 2.1%.
Consumer costs climbed less in July than in June in seven areas. Be that as it may, on a yearly basis, the customer price index was up more in New Brunswick (+2.5 percent) and in Newfoundland and Labrador (+3.4 percent) as both regions supported the provincial portion of the HST on July 1 by two percentage points.
“Markets may be worrying about Canada’s economic growth performance, but underlying inflation certainly isn’t raising any eyebrows,” noted Toronto-Dominion Bank economist Leslie Preston in a commentary.
In a different report, Statistics Canada said retail deals in June out of the blue fell by 0.1 percent in June from the prior month.
Economists had expected they would rise 0.6%. Retail sales totaled $44.1 billion in June.
Canadians spent less on food, beverages and clothing, offsetting higher sales of motor vehicles. Deals at new auto dealers ascended by 2.5 percent, the first such increase in five months, says Statistics Canada.
Sales of alcohol fell 4.7 percent, the biggest month to month drop in the category since June 2013.
Sales fell in five regions, drove by 0.8 percent drops in Quebec and Nova Scotia, and a 0.4% drop in Alberta.
The Canadian dollar weakened following the release of the retail sales and inflation reports.
Most analysts expected the Bank of Canada to keep its key interest rates at 0.5 percent for at least the rest of this year.