Canada's CPI stays flat at 1.5 pct in June

CNC
Added On July 23, 2016

 

TORONTO, July 22 (Xinhua) -- Canada's year-on-year inflation rate held steady at 1.5 percent in June, the same level as May, Statistics Canada said Friday.

June's consumer price index (CPI) rose 0.2 percent from the previous month, slightly more than forecast but still below May's 0.4 percent rise.

The inflation data showed prices rose in all major components in the 12 months to June, with the shelter index posting a 1.6 percent gain and food prices rising by 1.3 percent.

Shelter and household items registered the biggest gains of the major categories of Statistics Canada's consumer price index.

Core inflation, which excludes food and energy, was flat from the previous month, in line with the consensus forecast and below May's 0.3 percent increase.

Data showed food prices were the main factor in the leveling off, as they increased at a 1.3 percent annual pace in June, down from 1.8 percent the month before.

In particular, the fresh or frozen beef index declined by 3.3 percent in June, the first decline since August 2010. Dairy prices dropped by 2.1 percent.

Excluding gasoline, the CPI was up 1.9 percent year on year in June, equal to the increase in May.

Meanwhile, Statistics Canada said Canadian retail sales rose by 0.2 percent in May from April to hit a record 44.3 billion Canadian dollars (33.6 billion U.S. dollars), largely because of increases for food, drink and gasoline.

After the release of latest economic data, analysts expected the Bank of Canada to keep key interest rates on hold for at least another year. The central bank's next rate decision is scheduled on Sept. 7.