Analyst surveyed by Reuters had expected the annual inflation rate to hit 8.4% in June, up from 7.7% in May. The Bank of Canada last week said it expected inflation to remain around 8% for the next few months.
“The acceleration in June was mainly due to higher prices for gasoline, however, price increases remained broad-based with seven of eight major components rising by 3% or more,” Statscan said.
On a month-over-month basis, the index rose 0.7% in June, missing forecasts of 0.9% and down from 1.4% in May.
Canada’s inflation rate has been above the Bank of Canada’s 2% target since March 2021. The central bank last week surprised with a rare 100-basis-point rate increase in a bid to crush inflation and fend off the risk of a price spiral.
Gasoline prices were up 54.6% in June on a year-over-year basis, compared with 48.0% gain in May. High gasoline prices account for about a quarter of total price gains from a year-ago.
Source: Economy - investing.com
