Canada: A Mid-Summer’s Ease in Inflation

Summary of the publication

Consumer prices rose 0.1% in July, pushing the annual rate of inflation up to 7.6% from 8.1% in June.

The notable monthly decrease in gasoline (-9.2%) helped push headline inflation lower even as food and shelter rose 0.7% and 0.4% respectively.

Excluding food and energy, prices are 5.5% higher than they were a year earlier. The three-month annualized rate of seasonally-adjusted ex-food and energy inflation sat at 6.4%, suggesting that underlying inflation remains hot.

The Bank of Canada’s three core measures of inflation averaged 5.3% year-over-year.