Canada (SMALL BIZ MARKETING NEWS) In June, inflation cooled unexpectedly, in spite of the fact that spikes in the gasoline basic food products costs.
Stats Canada say annual inflation was at 3.1% in June. This is down from 3.7% in May.
Core rate, taking away indirect tax and the 8 most changeable components noted by the Bank of Canada, was 1.3%.
The agency claimed much of the decrease in the rate from June was because of lower prices on passenger vehicles, manufacturer discounts and travel accommodation’s lower costs.
Analysts are not in complete agreement as to whether or not this news will take the pressure off of the Bank of Canada to do something about interest rates. As the inflation pace was slower, store bought food and gasoline prices sustained the rate at over 3%, which is Central bank’s top of the range.
The dollar, which lifted over $1.06 Thursday, did lose ground after the report on inflation. The Canadian dollar fell 0.42 of a cent.
Food went up to 4.8% from June 2010 and total energy prices at 15.7% showed higher than last year at the same time. Gasoline prices were higher year over year, but really, it dropped a bit in comparison to May.
Shortly after the Bank of Canada claimed it was going to keep its key rate at 1%, the inflation report came out. The latest figures will probably give more time to the bank to arrive at a decision.
The core rate could drift up as we lose some of the low numbers in the calculation for 12 month calculations next quarter, but it looks like odds favor remaining under 2%.
Inflation pace slowed up in all provinces in comparison to May.
The fastest increase in consumer price at 4.4% was attributed to Nova Scotia, and Alberta was slowest at 2.1%.
photo:tehrantimes
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