Canada’s annual inflation rate fell in July, with Statistics Canada reporting that consumer prices rose 1.3 per cent from a year earlier.
In June, prices were up 1.5 per cent from the year before.
Consumer prices grew at a slower pace in eight provinces, but in Newfoundland and Labrador, consumer prices rose 1.6 per cent from July 2011 to July 2012. From June to July this year, there was an increase of 0.1 per cent in this province.
Prices in Ontario grew at the slowest pace. The Ontario consumer price index rose 0.7 per cent year over year in July, the smallest increase in that province since October 2009. As in June, Ontario recorded the smallest rate of increase for food purchased from stores, which rose 0.8 per cent in July. This compares with a 1.9 per cent increase for Canada. Gasoline prices declined 3.7 per cent in the 12 months to July.
On a seasonally adjusted monthly basis, the Canadian Consumer Price Index declined 0.1 per cent in July.
According to Statistics Canada, prices in every major category except clothing and footwear increased over the past year in the county. Food prices rose 2.1 per cent in the 12 months to July, following a two per cent advance in June.
Shelter costs nationally rose one per cent over the 12-month period to July after increasing 1.3 per cent the previous month. And, higher costs for telephone services and financial services led to year-over-year price gains for the household operations, furnishings and equipment component, Statistics Canada said in its latest report.
Transportation prices on the national scene rose 1.1 per cent on a year-over-year basis in July after increasing 1.7 per cent in June and the cost for passenger vehicles increased 2.3 per cent in July, following a 3.9 per cent rise the previous month.
The only major component that saw a decline in the 12 months to July was clothing and footwear ( down 0.7 per cent), led by price declines for women's clothing.
The Bank of Canada says it aims to keep inflation at an average of two per cent over the medium term.
Statistics Canada also released rates for major cities, but cautioned that figures may fluctuate widely because they are based on small statistical samples. The breakdown is below with the previous month’s figures are in brackets.
• St. John’s, N.L., 1.6 (2.1)
• Charlottetown-Summerside, 1.5 (1.5)
• Halifax, 1.2 (1.6)
• Saint John, N.B., 0.8 (1.4)
• Quebec, 2.0 (2.1)
• Montreal, 1.9 (2.0)
• Ottawa, 0.7 (1.0)
• Toronto, 1.0 (1.2)
• Thunder Bay, Ont., 0.1 (0.5)
• Winnipeg, 1.7 (1.4)
• Regina, 1.9 (2.1)
• Saskatoon, 1.6 (1.9)
• Edmonton, 1.0 (1.3)
• Calgary, 0.7 (1.3)
• Vancouver, 1.4 (1.7)
• Victoria, 1.0 (1.4)
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