In June, the rate of inflation increased to 1.9% as climbing the prices of vehicles and clothing.
Statistics Canada said on Tuesday that the speed of inflation increased by 1.9 percent in the month of June, as the cost of cars and clothes increased.
Passenger vehicles prices rose significantly in June – in May, the year rate increased by 4.1 percent year -on -year as compared to an increase of 3.2 percent. According to Statistics Canada, passenger vehicles used in 18 months increased their first year-to-year. The price of new cars also increased, with inflation rate to 5.2 percent in May.
Last month, the cost of clothing and shoes rose, in June, year after year, it increased by two percent. Statistics Canada says that the tariff came out as a result of tariff uncertainty, especially killing the clothing industry.
And in the grocery corridor, prices increased by 2.8 percent after the month increased by 3.3 percent. The data agency says that the price increase in that category slowed down in that category due to the decrease in price for fresh fruits and vegetables – the first decline in that category since October 2021, the data agency says.
Statistics Canada said that gasoline prices were almost unchanged in June as crude oil prices were high and geopolitical conflicts put pressure on the pumps.
The agency said the speed of inflation was stable at 1.7 percent in May.
The figure of headline inflation is in line with what economists were expecting – in a survey by the release in a survey, economists predicted that the annual pace of inflation would increase by 1.9 percent for the month.
Dog Porter, the chief economist of the BMO Financial Group, said inflation showed no real improvement in June, as the pressures of the trade war increased some prices. Porter says that high cost of housing is also a contribution factor that is maintaining inflation.
Statistics Canada on Tuesday Statistics Canada said that the speed of inflation increased slightly in Canada in the month of June. The statistics Canada said that the speed of inflation was stable at 1.7 percent in May.
As a result, Porter says that it is unlikely that the Bank of Canada will cut interest rates later this month.
Porter told CBC News that the central bank “is actually not comfortable in cutting interest rates, when the underlying inflation is correct at the high end of their comfort.” The bank aims to keep inflation close to two percent.
Porter stated that it is possible that it could cut rates in September, but only with a better inflation number.
To the south of the border, inflation was also increasing – according to the US Labor Department, consumer prices increased by 2.7 percent in June, a year before the annual growth of 2.4 percent in May.
The title there was powered by a range of high prices. The cost of gas increased by one percent from May to June, while grocery prices increased by 0.35. The device prices jumped for the third straight month.
