Canada: Annual CPI rose 2.5% in June vs. 2.4% expected

Eren Sengezer FXStreet

"The Consumer Price Index (CPI) rose 2.5% on a year-over-year basis in June, following a 2.2% increase in May," Statistics Canada reported on Friday.

Key takeaways from the official publication

This is the largest year-over-year increase in the CPI since February 2012.
This month's year-over-year CPI increase follows a year of gradual acceleration in consumer price inflation, from a recent low of 1.0% year over year in June 2017.
This trend reflects increases in prices for gasoline and food purchased from restaurants, as well as offsetting factors such as lower price inflation for electricity and telephone services.
These movements coincide with recent improvements in the economy and the labour market, as well as an increase in oil prices.
On a seasonally adjusted monthly basis, the CPI rose 0.1% in June, matching the increase in May.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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