Latest news with #CPI-median
Qatar Tribune
2 days ago
- Business
- Qatar Tribune
Canada's annual inflation rate eases to 1.7 percent
Agencies Canada's annual inflation rate eased to 1.7 percent in July from 1.9 percent in the prior month as lower year-on-year gasoline prices kept the consumer price index low, but core measures of inflation stayed sticky, data showed on Tuesday. Analysts polled by Reuters had forecast the annual inflation rate at 1.8 percent and the monthly inflation rate at 0.3 percent. The CPI increased by 0.3 percent in July from 0.1 percent in June on a monthly basis, Statistics Canada said. Gasoline prices dropped by 16.1 percent on a yearly basis in July, following a 13.4 percent decline in June. On a monthly basis the price of fuel dropped as geopolitical tensions eased and crude oil producing nations increased output. The elimination of carbon levy on purchase of petrol has helped bring down the cost of the fuel on a yearly basis and is expected to maintain a downward pressure on the CPI basket for another eight months. This has helped the overall consumer price index to clock a rate below the mid-point of the Bank of Canada's 1 percent to 3 percent target range, even as there are signs of rising prices of food. Excluding gasoline, the CPI rose 2.5 percent in July, Statscan said. The main drivers of the increase in costs were rise in food prices and shelter costs, StatsCan said. Food prices, which contributes close to 17 percent to the overall CPI basket, rose by 3.3 percent in July from 2.9 percent in June. Shelter costs, the biggest component of the CPI basket, rose 3 percent in July from 2.9 percent in June, marking the first increase since February last year. This was driven by a smaller decline in cost of natural gas and rise in rents by 5.1 percent. Core measures of inflation, which are closely tracked by the Bank of Canada have remained resilient and hovered around the top of the bank's preferred range of CPI. One of the core measures the CPI-median - or the centermost component of the CPI basket when arranged in an order of increasing prices - was at 3.1 percent in July, from 3 percent in June. The CPI-trim, which excludes the most extreme price changes, was unchanged at 3 percent. The share of the CPI basket which is above 3 percent continues to be elevated at over 37 percent, data showed. Money markets are betting the odds of a rate cut on Sept. 17 at 32 percent after the bank has stayed put at 2.75 percent for its last three rate decision meetings. The Canadian dollar weakened and was trading down 0.11 percent after the inflation data to 1.3817 to the US dollar, or 72.37 US cents. Two-year government bond yields were down 0.3 basis points to 2.735 percent.
Yahoo
2 days ago
- Business
- Yahoo
Canada's inflation cools to 1.7% as gasoline prices drop
Canada's inflation rate decelerated to 1.7 per cent in July, from 1.9 per cent the month before, driven by a drop in gasoline prices that reflects the removal of the consumer carbon tax, Statistics Canada said on Tuesday. Gasoline prices were down 16.1 per cent year over year and down 0.7 per cent on a monthly basis after a ceasefire between Iran and Israel and increased supply from the Organization of Petroleum Exporting Countries and its allies. Despite the headline number, seven major components in the consumer price index basket rose in July, Statistics Canada said. Excluding gasoline, CPI rose 2.5 per cent in July, matching increases in June and May. Excluding indirect taxes, inflation accelerated 2.3 per cent last month, down from 2.5 per cent in June. But core inflation, which the Bank of Canada prefers to look at when making its monetary policy decisions, stayed elevated around three per cent. Year-over-year CPI-common rose 2.6 per cent last month, the same as in June, and CPI-median rose by 3.1 per cent, up from three per cent in the previous month. CPI-trim rose by three per cent, the same increase as the month before. Andrew Hencic, a senior economist at Toronto-Dominion Bank, said core inflation is showing signs of losing momentum. 'On a go-forward basis, this report builds on what we saw last month, slowing momentum in core prices as slack in the economy builds,' he said in a note. 'From our lens, we think the Bank of Canada will have room to deliver more easing later this year as the economic slack continues to build and offset inflation pressure.' Despite concerns about trade war disruptions and the impact on pricing, Statistics Canada did not mention any price impacts due to tariffs. Last month, the agency said the uncertainty in global trade had put upward pressure on clothing prices. The Bank of Canada has said it will continue to monitor how tariff impacts are being passed through to consumers. The central bank has held its policy rate during its last three decisions at 2.75 per cent, citing concerns over underlying inflation as one of the reasons. Bank of Montreal chief economist Douglas Porter said the three-month trend in median CPI and CPI-trim has calmed to a 'reasonable 2.4 per cent annualized,' which could set the stage for further rate relief. 'If that more recent pace in core is maintained, and the economy remains soft, we believe that will eventually set the stage for Bank of Canada cuts,' he said in a note. Still, there remain a number of economic data releases before the Bank of Canada's next rate decision on Sept. 17, including second-quarter gross domestic product and job numbers for the month of August. Shelter prices in July rose 2.9 per cent, which was driven by an increase in rent, which rose 5.1 per cent last month, up from 4.7 per cent in June. Mortgage interest costs increased by 4.8 per cent year over year last month, down from 5.6 per cent in June. Mortgage interest costs have been on a downward trend since September 2023. Bank of Canada still unsure where interest rates should land The increase in shelter inflation was also attributed to a smaller year-over-year decline in natural gas prices, with residents in Ontario paying more compared to the previous year. Grocery prices also accelerated last month, rising by 3.4 per cent, compared to 2.8 per cent in June. The main price hikes were in confectionery and coffee due to unfavourable growing conditions for these products. Price growth in grocery prices has outpaced headline inflation for the past six months. Statistics Canada said Canadians paid 27.1 per cent more for food in July than they did in July 2020. • Email: jgowling@ Sign in to access your portfolio
Calgary Herald
3 days ago
- Business
- Calgary Herald
Canada's inflation cools to 1.7% as gasoline prices drop
Canada's inflation rate decelerated to 1.7 per cent in July, from 1.9 per cent the month before, driven by a drop in gasoline prices that reflects the removal of the consumer carbon tax, Statistics Canada said on Tuesday. Article content Gasoline prices were down 16.1 per cent year over year and down 0.7 per cent on a monthly basis after a ceasefire between Iran and Israel and increased supply from the Organization of Petroleum Exporting Countries and its allies. Article content Article content Article content Excluding gasoline, CPI rose 2.5 per cent in July, matching increases in June and May. Excluding indirect taxes, inflation accelerated 2.3 per cent last month, down from 2.5 per cent in June. Article content But core inflation, which the Bank of Canada prefers to look at when making its monetary policy decisions, stayed elevated around three per cent. Article content Year-over-year CPI-common rose 2.6 per cent last month, the same as in June, and CPI-median rose by 3.1 per cent, up from three per cent in the previous month. CPI-trim rose by three per cent, the same increase as the month before. Article content Andrew Hencic, a senior economist at Toronto-Dominion Bank, said core inflation is showing signs of losing momentum. Article content 'On a go-forward basis, this report builds on what we saw last month, slowing momentum in core prices as slack in the economy builds,' he said in a note. 'From our lens, we think the Bank of Canada will have room to deliver more easing later this year as the economic slack continues to build and offset inflation pressure.' Article content Article content Despite concerns about trade war disruptions and the impact on pricing, Statistics Canada did not mention any price impacts due to tariffs. Last month, the agency said the uncertainty in global trade had put upward pressure on clothing prices. Article content Article content The Bank of Canada has said it will continue to monitor how tariff impacts are being passed through to consumers. The central bank has held its policy rate during its last three decisions at 2.75 per cent, citing concerns over underlying inflation as one of the reasons. Article content Bank of Montreal chief economist Douglas Porter said the three-month trend in median CPI and CPI-trim has calmed to a 'reasonable 2.4 per cent annualized,' which could set the stage for further rate relief. Article content 'If that more recent pace in core is maintained, and the economy remains soft, we believe that will eventually set the stage for Bank of Canada cuts,' he said in a note.
Mint
15-07-2025
- Business
- Mint
TSX retreats from record high as US bank earnings weigh on financials
TSX ends down 0.5% at 27,054.14 Financials lose 0.6%, energy was down 0.9% Canada's annual inflation rate rises to 1.9% Eight of 10 major sectors end lower July 15 - Canada's main stock index pulled back on Tuesday from a record high, with heavily weighted financials among the sectors that declined as investors assessed U.S. bank earnings and after domestic inflation data reduced prospects of Bank of Canada interest rate cuts. The S&P/TSX composite index ended down 144.71 points, or 0.5%, at 27,054.14, after posting a record closing high on Monday. Wall Street opened the second-quarter earnings season on a somber note, with banking stocks whipsawing in volatile trade. "We're seeing profit-taking against the news because we've seen markets run up so hard for three months," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "With the U.S. banks down, it's dragging on the Canadian banks, especially because some of the Canadian banks have large U.S. operations." The financials sector, which accounts for 33% of the TSX's weighting, fell 0.6%. Eight of the TSX's 10 major sectors ended lower. "Canadian inflation doesn't help here either because it suggests the Bank of Canada may not be able to cut much further," Cieszynski said. Canada's annual inflation rate rose to 1.9% in June from 1.7% in May and CPI-median, one of the core measures of inflation closely tracked by the BoC, rose to 3.1% from 3%. Money markets have largely priced out the chances of a rate cut at the BoC's next policy decision on July 30 in response to the inflation data as well as stronger-than-expected jobs data on Friday. The energy sector lost 0.9% as the price of oil settled down 0.7% at $66.52 a barrel. Gold also fell. The materials sector, which includes metal mining shares, was down 0.7%. Technology ended 0.8% lower. This article was generated from an automated news agency feed without modifications to text.
Yahoo
15-07-2025
- Business
- Yahoo
Canada's inflation rate rose to 1.9% in June, leaving 'no opening' for a July Bank of Canada rate cut
Canada's inflation rate rose in June as the Consumer Price Index (CPI) increased to 1.9 per cent annually from 1.7 per cent the month before, according to Statistics Canada data released Tuesday. Gas prices remained lower compared to a year ago but had a lesser effect on keeping inflation down than in May, while prices increased for goods like cars and furniture. On a monthly basis, CPI increased 0.1 per cent in June. Seasonally adjusted, CPI rose 0.2 per cent. Economists had expected inflation to rise to two per cent in June, according to consensus forecasts published by CIBC. "The quick read is that the overall report really gives the Bank of Canada no opening to cut interest rates at the upcoming meeting on July 30," BMO chief economist Douglas Porter wrote in a note about the data. Measures of core inflation — which the Bank of Canada (BoC) favours — remained high, with CPI-median rising three per cent from last year and CPI-trim flat at three per cent. "Simply put, underlying inflation remains stubbornly strong," Porter wrote, noting the surprising job gains reported last week that had already made a cut less likely. "We'll need to see a material deceleration in core for a cut in even the September meeting to be in play, barring a steep deterioration in the economy (which can't be ruled out with the ongoing tariff uncertainty)." Inflation on grocery prices remained higher than the headline rate, but slowed from the month before — a 2.8 per cent year-over-year increase in June following a 3.3 per cent rise in May. The removal of the carbon tax in April continues to have a notable effect on inflation — CPI excluding energy rose 2.7 per cent in June from the year before. However, the impact of lower gasoline prices was less substantial in the latest data. "While consumers continued to pay less at the pump on a year-over-year basis in June (-13.4 per cent), the decline was smaller than in May (-15.5 per cent)," Statistics Canada noted. Durable goods prices rose 2.7 per cent in June, up from a two per cent increase in May. Passenger vehicle prices were up 4.1 per cent from a year ago, with StatCan also measuring the first year-over-year rise in used car prices in 18 months. Today's release follows the May inflation rate that came in flat at 1.7 per cent. This story will be updated. John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on X @jmacf. Download the Yahoo Finance app, available for Apple and Android. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
