A monthly increase in gasoline prices and electronics purchases pushed retail sales up by a greater-than-expected 0.6 percent in June.
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Food prices were up 3.2 per cent compared with a year ago led by meat prices, which rose 6.1 per cent. The price of fresh or frozen beef was up 17.2 per cent from a year ago, while fresh or frozen pork gained 2.0 per cent. Consensus:! Core Inflation y/y +2.4% +2.3%!Core: +2.4% y/y!
The province’s consumer price index was up 1.9 per in the 12 months since July 2014, the government agency reported Friday.
Bank of Canada Governor Stephen Poloz has said the “underlying trend” of inflation is about 1.5 percent to 1.7 percent, reflecting slack in the economy. The biggest driver was the motor vehicle and parts category, which climbed 3.0 percent from May. “Sales also fell at clothing stores (-0.4%) for the second consecutive month”, notes TD Economics.
Prince Edward Island saw prices drop 0.1 per cent to post its eighth consecutive year-over-year decrease.
London is no longer showing the rocketing growth it was – indeed, it’s now a little below average, with a price rise of 5.3% over the previous year .
The largest downward impact was brought about by the Transport and Communication Index (0.38 percentage points).
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So the question is whether such additional easing is actually needed, with the BOC having made clear that even at such low levels of interest rates, it does have the tools and the room to maneuver. But high and rising debt burdens, along with an eventual increase in long-term borrowing rates, suggest that real consumer spending growth is likely to diminish next year. Republication or redistribution of content provided by EconoTimes is expressly prohibited without the prior written consent of EconoTimes, except for personal and non-commercial use.
