Statistics
Canada announced on Tuesday the country’s consumer price index (CPI) slipped
0.1 per cent m-o-m in June,
following an unrevised 0.6 per cent m-o-m jump in the previous month. This
represented the first monthly decrease in CPI since December 2023 (-0.3 per
cent m-o-m).
On a y-o-y
basis, Canada’s inflation rate showed a 2.7 per cent rise last month, slowing from an
unrevised 2.9 per cent in May.
Economists had predicted
inflation would increase by 0.1 per cent m-o-m and 2.8 per cent y-o-y in June.
According to
the report, the June deceleration in the headline CPI was mainly due to a slower
year-over-year growth in gasoline prices (+0.4 per cent y-o-y compared to +5.6 per
cent y-o-y in May) and a decline in prices for durable goods (-1.8 per cent
y-o-y). Meanwhile, moderating the slowdown was a climb in prices for food
purchased from stores (+2.1 per cent y-o-y) and a softer decline for cellular services (-12.8 per cent y-o-y compared to -19.4 per
cent in May).
Meanwhile, the trimmed-mean
CPI – the preferred measure of core inflation of the Bank of Canada - surged
2.9 per cent y-o-y in June, the same pace as in the previous month. Economists had foreseen
a soar of 2.8 per cent y-o-y.