Statistics Canada’s shopper worth index exhibits Canada’s inflation fee rose to 1.three per cent in July, led by will increase in meals costs.
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The Journal, meanwhile, noted that economists are concerned the slow increase in consumer prices will impact wage growth and affect the ability of people and businesses to improve their finances.
The index for all food at home also finished higher, climbing 0.2%.
“The declines were largely the result of gasoline prices, which were 12.2% lower than 12 months ago”, TD Economics’ Brian DePratto said in a note to investors.
Core inflation, which excludes the most volatile categories out of the consumer price index including fruit, vegetables, mortgage interest and natural gas, increased 2.4%.
Sterling rose as financial markets weighed the likely timing of the first rise in UK base rates from their record low of 0.5 per cent in the wake of the stronger-than-forecast inflation data.
On a year-over-year basis, prices were up in seven of the eight major components of the main inflation index, including a 3.2 percent increase in food. Food prices advanced 3.2 percent including a 6.1 percent gain in meat.
Clothing and footwear prices were up 1.3 per cent compared with a year ago, boosted by the cost of women’s clothing which increased in 1.2 per cent year over year, after posting a decrease in July.
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In its monetary policy report last month, the central bank noted core inflation has been above two per cent in recent months, but attributed it to “transitory effects” including the drop in the Canadian dollar and some sector-specific factors. Saskatchewan led the pack, with prices rising 1.9% in July, followed by Ontario (1.5%) and Alberta (1.3%).
