Canadian Consumer Price Inflation – July 19, 2013

Canadian inflation rose in June from May’s muted 0.7 per cent but remained tame at just 1.2 per cent. The rise in consumer prices was mostly the result of higher transportation costs due to higher gasoline and and motor vehicle prices. Core inflation, which strips out the most volatile components of the CPI, such as food and energy prices, increased 1.3 per cent in June. Consumer prices in BC actually fell 0.5 per cent in the 12 months to June largely as a result of the elimination of the HST. 

Inflation continues to run well below the Bank of Canada’s 2 per cent target and we anticipate it will do so for most of this year. That, along with modest growth in the Canadian economy, will keep the Bank of Canada sidelined until 2014.

For more information, please contact: Gino Pezzani

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