OTTAWA — Statistics Canada says the consumer price index for June was up 0.7 per cent compared with one year ago, ending a run of negative inflation that began in April in the wake of the COVID-19 pandemic.
The consumer price index had registered two months of negative readings leading up to June, first with 0.2 per cent annualized decline in April, then a further 0.4 per cent drop in May.
The average economist estimate from data firm Refinitiv forecasted an annualized inflation rate of 0.3 per cent for the month.
Statistics Canada says that excluding gasoline, the consumer price index rose 1.2 per cent.
This is a breaking news update. Our earlier story follows
Statistics Canada will say today how inflation fared in June as more businesses reopened from pandemic-related lockdowns that put a damper on consumer spending.
The consumer price index has registered two months of negative readings leading up to June, first with 0.2 per cent annualized decline in April, then a further 0.4 per cent drop in May.
There is an expectation for a turnaround in June with the average economist estimate from data firm Refinitiv forecasting an annualized inflation rate of 0.3 per cent for the month.
The Bank of Canada forecasted last week that annual inflation will be 0.6 per cent this year and vowed to maintain its key interest rate at the effective lower bound of 0.25 per cent until it hits its two-per-cent inflation target.
Shifts in consumer behaviour have thrown off the consumer price index, which Statistics Canada said would have shown annualized readings of 0.0 per cent in April and -0.1 per cent if it better reflected pandemic spending.
The agency is not expected to include an inflation reading under the experimental price index Statistics Canada created with help from the central bank.
This report by The Canadian Press was first published July 22, 2020
