Canada’s annual inflation rate experienced a slowdown in June, primarily driven by a decrease in fuel prices. According to Statistics Canada, the country’s consumer price index rose by 2.8% compared to the previous year, falling short of market expectations. Economists at TD Securities had predicted a 3% increase for the month, following a decline to 3.4% in May.
In terms of month-over-month growth, prices only saw a modest rise of 0.1% in June, falling below the consensus forecast of 0.3%. Similarly, on a seasonally adjusted basis, the Consumer Price Index (CPI) only increased by 0.1% compared to the previous month.
Furthermore, the Bank of Canada’s preferred measures for underlying core inflation, namely the trimmed mean and weighted median, averaged at 3.8% in June, marking a slight decrease from the previous month’s rate of 3.9%. These measures exclude volatile commodities like food and energy and aim to provide a more accurate reflection of price changes.
Overall, Canada’s inflation rate in June remained subdued due to a decline in fuel prices. Despite some fluctuations, core inflation also reflected stability when excluding volatile goods from the calculations.