Statistics Canada released June’s consumer price index (CPI) data on Tuesday (July 15). The report showed that year-over-year inflation gained momentum during the month, rising to 1.9 percent from the 1.7 percent recorded in May. The increase was attributed in part to the 13.4 percent year-over-year decline in gas prices seen in June, as it was a smaller drop than May’s 15.5 percent decrease caused by the removal of the consumer carbon tax. Other factors contributing to the rise included a 2.7 percent increase in durable goods, with passenger vehicles posting the largest gains at 4.1 percent. Grocery prices also increased 2.8 percent, although they eased off from a 3.3 percent increase in May. While economists had predicted a larger 2 percent rise in CPI, the figures still make it unlikely that the Bank of Canada will cut its benchmark rate at its next meeting on July 30. Canada’s central…
