The monthly gains matched the forecasts of economists surveyed by The Wall Street Journal.
Statistics Canada said Friday the consumer price index rose 1.0 per cent in June compared with a year ago, following an increase of 0.9 per cent in May. Excluding food and energy, so-called core consumer prices rose 0.2% in June. And bacon prices rose 1.5% last month, the largest increase in a year.
The Fed’s preferred inflation gauge, the price index for personal consumption expenditures, has undershot a 2 per cent target for three years. Increases were seen in all provinces across the country with the exception of Prince Edward Island, where prices fell 0.1%.
Food prices were a major factor in June’s increase, rising 0.3% in large part because of sharply higher egg prices.
To understand how it works, imagine a year when inflation was 19.2% higher relative to the base year. About one out of every eight individuals surveyed mentioned either the debt crisis in Greece, turmoil in China’s economy and stock market or bickering over President Barack Obama’s Trans-Pacific Partnership trade pact as reasons for being more unsettled, Richard Curtin, director of the Michigan Survey of Consumers, said in a conference call.
U.S. consumer prices rose broadly in June, bringing the annual inflation rate back into positive territory, government data showed today.
The data came just days after the central bank cut interest rates for the second time this year to boost an economy that likely contracted in the first half of 2015.
Inflation was up 0.8% year-over-year in British Columbia.
At the national level, the BLS reported food prices up.3% in June.
“Unfortunately for Canadians, the renewed slump in the loonie suggests that imported goods prices are going to continue climbing for at least another few months”. Gasoline prices rose 3.4 percent and natural gas gained 3.4 percent, its first advance since December. Gasoline prices were up 3.4 per cent on a seasonally adjusted basis in June.
The main downward impact was recorded in the Transport Index (0.2 percentage points), due to lower fuel prices. The series was driven lower by declines in the used cars (-0.4%), apparel (-0.1%) and alcoholic beverages (-0.2%) components.