Canada First Mortgage

Financial Post · Friday, Jul. 23, 2010

OTTAWA — Consumer prices in Canada were up one per cent per cent in June compared to a year earlier, Statistics Canada said Friday.

The results are in line with expectations, as economists were expecting annual inflation of one per cent in June. The compares to 1.4 per cent in May.

Core inflation, which strips out volatile items such as energy products and certain foods, was at 1.7 per cent last month. In May, the core inflation rate was 1.8 per cent and economists expected that to rise to 1.9 per cent in June.

The Bank of Canada, which aims for annual inflation of about two per cent, raised its target interest rate for second time in two months this week by a quarter-point to 0.75 per cent.

Overall annual inflation has not been as high as two per cent since November 2008. Core inflation, which the central bank deems a better indicator of underlying trends, was two per cent or more in January and February of this year, and has remained near that level since.
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