Statistics
Canada announced on Tuesday that the country’s consumer price index (CPI) edged
up 0.1 per cent m-o-m in June,
following an unrevised 0.6
per cent m-o-m surge in the previous month.
On a y-o-y
basis, Canada’s inflation rate climbed by 1.9 per cent last month, hastening from an unrevised 1.7 per cent
in May.
Economists had expected
the CPI would rise by 0.1 per cent m-o-m and 1.9 per cent y-o-y in June.
According to
the report, the faster pace of rise of the headline annual inflation reflected a
weaker decline in gasoline prices (-13.4 per cent y-o-y compared to -15.5 per
cent y-o-y in May) and quicker growth in prices for some durable
goods (+2.7 per
cent y-o-y compared to 2.0 per cent y-o-y in May), including passenger vehicles (+4.1 per cent y-o-y compared to 3.2 per
cent y-o-y in May) and furniture (+3.3 per cent y-o-y compared to +0.1 per cent
y-o-y in May).
Meanwhile, the
monthly uptick in the headline CPI reflected gains in 4 of all 8
major items, led by transportation, which posted a 0.5 per cent m-o-m gain,
even as gasoline prices fell 0.7 per cent m-o-m. Meanwhile, the recreation, education
and reading component demonstrated the largest m-o-m drop of 0.8 per cent m-o-m.
Meanwhile, the trimmed-mean CPI - the preferred
measure of core inflation of the Bank of Canada (BoC) - increased 3.0
per cent y-o-y in June, the same pace as in the previous month. Economists had foreseen
an advance of 3.0 per cent y-o-y.