10 The consumer price index rose 0.3% and notched its first yearly positive reading since December, though it was just 0.1%, as the energy price plunge eased. With the residential vacancy rate near a 22-year low as a firming labour market boosts household formation, shelter costs are likely to continue rising.
But core inflation, which strips out volatile items and is closely watched by the Bank of Canada, was less subdued at 2.3 percent, up from 2.2 percent in May. The core index climbed 0.2 percent in June, excluding food and fuel.
The Consumer Price Index released by the US Bureau of Labor Statistics shows that inflation rose 0.3% in June for all urban consumers.
The CPI is calculated by tracking the prices of “basket” goods and comparing it to their prices in a base year.
Consumers benefitted from a slight reduction in the cost of clothes and cars. About 650,000 prices are checked each year across Canada.
WASHINGTON – Rising gasoline prices pushed inflation up modestly in June.
A category created to track the rental value of owner- occupied homes also rose 0.4 per cent, the most since October 2006. The uptick in core prices also came in line with expectations.
Widely considered a long-term cause for inflation is the amount of money in circulation.
However, Commonwealth Bank of Australia economist Michael Blythe says the low Australian dollar, which on Monday morning was fetching US73.68¢, may force the RBA to revise up its inflation forecast. Those decreases were driven by lower gasoline prices. For example, more efficient production can result in price deflation, but that doesn’t indicate a shrinking economy.
While gains in construction of either type of home add to growth, economists such as Shenfeld pointed out multifamily projects tend to make smaller contributions. In the picture above, a woman protests hyperinflation by carrying around worthless notes in Serbia during its hyperinflation crisis in 1992.
The impact of the oil price drop has probably helped to quell what could otherwise have been an inflation environment now calling for Fed action.
In the long-biased and hopeful stock market, and the media that follows it, it seems to me that a great deal of the discussion around the Federal Reserve has to do with reasoning against a near-term interest rate hike.