Tuesday, November 25th3.2°C
22246
24058

Inflation rate rises to 1.2% in June

Rising gasoline and car prices fuelled the first significant spike in Canada's cost of living since February last month, lifting the annual inflation by half a point to 1.2 per cent -- still low by historical standards.

Overall, consumer prices were higher in six of the eight major components tracked by Statistics Canada. The exceptions were health and personal care costs, and recreation, education and reading.

The increase from 0.7 per cent in May put Canadian inflation rate back into the desired range of between one and three per cent that the Bank of Canada strives to achieve.

Inflation remains well below the central bank's ideal target of two per cent, however, a level the central bank does not expect to reach for some time.

Still, the bank will find comfort that inflation is beginning to normalize -- after falling to a super-low 0.4 per cent in April.

The June increase in the consumer price index is not expected to have a significant impact on markets, as economists had accurately predicted the rise.

The major contributors in June were a 4.6-per-cent increase in gasoline prices at the pump, and a two-per-cent hike in the cost of purchasing a new motor vehicle, which Statistics Canada attributed to smaller monthly price declines compared to June 2012.

On a month-to-month basis, gasoline was 2.8 per cent higher than it was in May.

More modest increases were recorded in food prices, up 1.2 per cent from a year ago, and shelter costs, also up 1.2 per cent.

On individual items, natural gas jumped 11.3 per cent, rent was up 1.7 per cent and property taxes were 2.8 per cent higher.

The Bank of Canada's core inflation index -- which excludes certain items that tend to swing wildly -- moved up a more modest 0.2 percentage points to 1.3.

But there were also plenty of items that saw prices continuing to weaken. Mortgage interest costs fell 3.8 per cent, the price for video equipment dipped 9.2 per cent, digital computing equipment decreased 4.3 per cent, prescription medicines slipped 4.1 per cent, and travel tours slowed by 4.8 per cent.

Regionally, prices were higher in all provinces except British Columbia, which recorded its third consecutive month of disinflation, chiefly attributed to a one-per-cent decrease in food costs. The withdrawal of the harmonized sales tax in April is also exerting a downward draft on consumer prices in the province.

Manitoba saw the biggest jump in inflation, rising almost a full point to 2.7 per cent as gasoline prices rose 10.7 per cent.



Read more Business News

24035


Recent Trending




Today's Market
S&P TSX15073.65+58.24
S&P CDNX780.64-6.86
DJIA17814.94-2.96
Nasdaq4758.252+3.36
S&P 5002067.03-2.38
CDN Dollar0.8880-0.0004
Gold1199.30+2.2001
Oil73.89-0.20
Lumber328.30-2.70
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32+0.04
Cantex0.040.00
Anavex Life Sciences0.175-0.005
Metalex Ventures0.030.00
Russel Metals32.14+0.65
Copper Mountain Mining2.15-0.02
Colorado Resources0.130.00
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.325-0.04

 
23744


24035

FEATURED Property
20158481110 Felix Road
3 bedrooms 3 baths
$364,900
more details
image2
Click here to feature your property
Please wait... loading


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...

_



24158

24156


Member of BC Press Council


22842