Economics
Inflation in Canada Unexpectedly Falls Back to Near Zero
- Drop in airline prices were major downward contributor
- The reading was ‘a big step back,’ says CIBC’s Mendes
Declines in air transportation prices were a major downward contributer to the headline inflation figure.
Photographer: James MacDonald/BloombergThis article is for subscribers only.
Price pressure in Canada returned to almost zero in July.
The consumer price index increased only 0.1% from the same month a year earlier, Statistics Canada reported Wednesday from Ottawa. That’s a reversal from last month when inflation turned positive on higher gas, food and shelter prices. On a monthly basis, prices were flat, and seasonally adjusted actually fell 0.1%.