Canada’s inflation rate was unchanged in June as rising home and car expenses offset weaker gasoline and food prices.
The consumer price index was 1.5 percent higher in June than a year earlier, Statistics Canada said Friday from Ottawa, slightly higher than the median economist forecasts of 1.4 percent. The core rate that excludes eight volatile products was
The data are consistent with a benign inflation picture for an economy that is struggling to generate any momentum amid lower oil prices, and relies on housing to fuel growth. The Bank of Canada isn’t anticipating inflation to rise sustainably to its 2 percent target until next year.
Total inflation hasn’t exceeded the central bank’s target since October 2014.
The cost of owning a home recorded one of the biggest gains, up 3.5 percent in June from a year ago. Food inflation slowed to 1.3 percent from 1.8 percent in May. Passenger vehicle prices rose 5.6 percent in June, an acceleration from May’s 4.3 percent pace.
Inflation on a monthly basis rose 0.2 percent in June, compared with economist estimates for no growth. Core prices were unchanged on the month, versus a forecast of a 0.1 percent decline.