July inflation rate hits 3.4%
21.08.2008 23:01
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- Source: cbc.ca
Canada's annual rate of inflation hit 3.4 per cent in July — its highest level since March 2003 — due to higher gasoline prices. Statistics Canada said July's 12-month price increase was up from the 3.1 per cent annual rise seen in June. With gasoline factored out, the one-year increase in prices was 2.1 per cent, up from the 1.8 per cent figure seen in June. Driven by higher world prices for oil, prices at the gas pumps rose 28.6 per cent between July 2007 and last month. Natural gas costs were also 25 per cent higher year-over-year, partly due to a decline in prices that occurred at the same time last year and to recent increases related to oil prices.
'The price changes in the 'basket' reflect real inflation because they are a comprehensive group of common purchases. This is the best way to calculate inflation.' —Percy McLaren Add your comment Mortgage interest charges advanced 8.5 per cent from July 2007 to July 2008, but that was down from the nine per cent increase posted in the 12 months to June. "The slowdown in the rise in mortgage interest cost was due more to a softening of new housing prices rather than to lower mortgage interest rates," Statistics Canada said. Food prices were also higher. The one-year increase in prices was 4.3 per cent, led by a 13.2 per cent rise in the cost of bakery products. The core rate of inflation — which omits some of the more volatile components and is closely watched by the Bank of Canada for interest-rate setting — stood at 1.5 per cent from July 2007 to July 2008. July was the fourth straight month that the one-year core index increased 1.5 per cent. Economists said they expect the steady core inflation reading will keep the Bank of Canada from adjusting interest rates into next year. "While headline inflation picked up on the month, this morning's report shows little evidence of these higher prices filtering through to core inflation," said TD Bank economist Dina Cover. "And looking ahead, it appears as though the worst may be behind us. Energy prices have retreated considerably over the past month, and we do not expect to see a meaningful rebound during the second half of the year," Cover said. "Look for inflation to hang around three per cent for some time yet, while core looks poised to grind higher as the loonie-at-par discounts begin to fade from the calculation later this year," said BMO Capital Markets economist Douglas Porter. Consumer HeadlinesHealth officials probe more deaths, advise tossing suspect meatIf you don't know where your deli meat came from, don't eat it, Ontario health officials advised Thursday as they investigated more deaths for links to an outbreak of listeriosis and said they expect more cases.Liberals blast Tory call for decreased government role in food inspectionA government proposal allowing the food industry to police itself would lead to more recalls as businesses cut corners, key members of the Liberals said Thursday amid a nationwide outbreak of a dangerous food-borne bacterial infection.Smoking in movies encourages young people to pick up the habit: reportTobacco marketing and depictions of smoking in movies promote smoking among young people, says a report released Thursday by U.S. National Cancer Institute.Toronto conference to focus on Facebook risksOntario's information and privacy commissioner plans to use the first week of school to make high school and university students aware of how dangerous revealing too much about themselves online can be.Yellow margarine finally on sale in QuebecYellow margarine has begun to hit store shelves in Quebec for the first time in 21 years after the province repealed a regulation last month that prevented its sale. Consumer Life FeaturesIN DEPTHEnvironmentHealth Canada to evaluate pigments, solventsTECHNOLOGY'Make' it yourselfMagazine foments DIY revolutionSAFETYRecalls and AdvisoriesYOUR VOICEFound your calling?Tell us why your job is a dream job!BLOGFood BytesThe colossal appetite of PhelpsBLOGComm-OdditiesBillionaire breaks real-estate record with $793M bidPeople who read this also read …
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