Statistics Canada announced on August 15 that inflation in July was up 3.3% from the same month last year. It rose just 2.8% in June. He cited higher energy prices than in June and continued rising mortgage rates as factors for the higher inflation.
Energy prices fell by -8.2% in July compared to -14.6% in June compared to the same month of the previous year. Following a 21.6% drop in June, gasoline prices fell only 12.9% year-on-year in July. Electricity charges increased by 11.7% year-on-year, far exceeding the 5.8% increase in June.
This was largely due to a 127.8% increase in electricity prices in Alberta amid high summer demand. Mortgage interest rates rose the fastest. July saw a record rise of 30.6%, making it the biggest driver of inflation this month.
Inflation, which excludes mortgage rates, was announced at 2.4% in July. Food prices also remain high, rising 8.5% in July. However, it was slightly below June’s 9.1%.
The reasons for this were that fresh fruit prices fell by 4.1% from 10.4% in June, and bakery goods prices remained at 9.8% in July from 12.9% in June. The next announcement will be on September 6th.
The July employment report shows that the unemployment rate has worsened for three months in a row, so the announcement of the Bank of Canada in September is attracting attention.