Inflation rate rose to 3% in July as gas prices climbed again


Text to Speech Icon

Listen to this article

Estimated 2 minutes

The audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.

Canada’s inflation rate rose to three per cent in July, as renewed hostilities in the Middle East sent prices at the gas pumps back up again.

According to new Statistics Canada data, the price of gas grew more quickly in July, at 25.7 per cent on a yearly basis, compared to June, when gas prices grew at a rate of 20.5 per cent.

The blockade in the Strait of Hormuz and partial closure of shipping routes in the Red Sea were to blame for the pressure on energy prices, the data agency said. A month before, peace talks brought a brief stop to the fighting in the Middle East, which helped cool gas prices and contributed to an ease in inflation to 2.8 per cent in June.

Excluding gas, the consumer price index rose 2.2 per cent in July for a third consecutive month, Statistics Canada said.

The three per cent figure is just above what economists had been predicting. Heading into Monday’s release, most economists had expected inflation would rise just a tick to 2.9 per cent.

Costs for travel tours also spiked in July, according to Statistics Canada, with pricier hotels and flights to U.S. destinations amid the FIFA World Cup contributing to the increase.

Higher jet fuel costs also put upward pressure on air transportation prices — which rose 12 per cent year-over-year in July, compared to 9.6 per cent in June.

Prices for food, on the other hand, helped offset cost pressures. Inflation for food bought from stores cooled to 3.1 per cent in July, down from 3.9 per cent in the previous month.

Slower growth for fresh vegetables, chicken and cereal products helped lower food prices overall. Fresh fruit, meanwhile, accelerated to 6.1 per cent, as costs for berries and melons especially soared.

Despite the positive food figures for the month, Statistics Canada noted that grocery price inflation has now outpaced the all-items consumer price index for 18 months in a row.



Source link

  • Related Posts

    S&P/TSX composite up in late-morning trading, U.S. stock markets mixed

    TORONTO — Canada’s main stock index was up in late-morning trading, helped by strength in energy and base metal stocks, while U.S. markets were mixed. The S&P/TSX composite index…

    Luigi Mangione Seeks Murder Case Dismissal on Double Jeopardy

    IE 11 is not supported. For an optimal experience visit our site on another browser. Former MLB Pitcher Tommy John Dies at 83 00:25 Meet the Mom Behind Cardio Work…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    TV Review: ‘Lanterns’ | Moviefone

    TV Review: ‘Lanterns’ | Moviefone

    Hayden Panettiere, former child actress who starred in ‘Heroes,’ dies at 36

    Hayden Panettiere, former child actress who starred in ‘Heroes,’ dies at 36

    Final Hours: This Massive 16-Inch M5 Pro MacBook Pro Has an Equally Massive $650 Discount

    Final Hours: This Massive 16-Inch M5 Pro MacBook Pro Has an Equally Massive $650 Discount

    TCG Card Shop Simulator’s Biggest 1.0 Feature: How to Dominate Tetramon Duel Master

    TCG Card Shop Simulator’s Biggest 1.0 Feature: How to Dominate Tetramon Duel Master

    S&P/TSX composite up in late-morning trading, U.S. stock markets mixed

    S&P/TSX composite up in late-morning trading, U.S. stock markets mixed

    Opinion: Antisemitism on campuses exists, even if some don’t see it