Canadian inflation perks up for first time since January, hits 1.2% in July
OTTAWA — The annual inflation rate accelerated last month for the first time since January for a result that supported the view consumer prices are set to rise with the improving economy.
Statistics Canada’s latest inflation report, released Friday, found that higher gasoline prices in July helped the year-over-year rate pick up its pace to 1.2 per cent. This was an increase from June’s reading of one per cent, which was inflation’s lowest mark in almost two years.
While still below the Bank of Canada’s ideal inflation target of two per cent, the July number supported the bank’s expectations that the softness was mostly temporary.
Analysts said Friday’s inflation report reinforced widely held expectations that the central bank will hike its benchmark interest rate again this fall.