Economic Update: Inflation Report

Most recent economic update from Tina Kremmidas Chief Economist here at the Canadian Chamber of Commerce.

Headline inflation as measured by the All-items Consumer Price Index (CPI) rose 1.3% in the 12 months to July following a 1.5% increase in June.The increase in consumer prices last month was led by higher prices for the purchase of passenger vehicles (+2.3% on a year-over-year basis), food (+2.1%) and electricity (+3.7%). The only major component which declined in the 12 months to July was clothing and footwear (-0.7%).

The highest inflation reading was recorded in Quebec (+1.9% in the 12 months to July), followed by Manitoba (+1.8%) and Saskatchewan (+1.7%). Consumer prices increased the least in Ontario (+0.7%) and Alberta (+0.9%).

The Bank of Canada’s closely watched core measure of inflation (which excludes the eight most volatile components of the CPI, like food and energy, as well as the effect of changes in indirect taxes) advanced 1.7% in the 12 months to July, decelerating from the 2.0% pace set in June.

Today’s data suggests little near-term inflationary pressures, providing another reason for the Bank of Canada to keep interest rates on hold.

Tina Kremmidas
Chief Economist
(416) 868-6415 ext. 222

Your Corporate Relations Team 
Senior Vice President: Michael Nixon 416-868-6415 ext 232

Western Canada: Kimberly Gale 403-271-0595

Quebec: Jean-Jacques Hermans 514-866-4334

Ontario: Stephen Johns 416-868-6415 ext 239

General inquiries: Melissa McGee 416-868-6415 ext 236

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Angela About Angela

Hi, I am Angela Fiebelkorn, President of the Fort Simpson Chamber. You can contact us at fscofc@gmail(dot)com or call 867-695-6538.