Inflation at 56-year-low in Canada

Canada's annual inflation rate hit a 56-year-low in July, when prices fell by 0.9 per cent from June on sharply lower energy prices, Statistics Canada (Statscan) said yesterday.

Analysts had on average expected an annual decline of 0.8 per cent. July's figure – the lowest since the 1.4 per cent drop recorded in July 1953 – is far weaker than the Bank of Canada's target range of about two per cent annual inflation.

Statscan said the July figure reflected a 23.4 per cent fall in energy prices from July 2008 to July 2009. The annual inflation rate excluding energy rose 1.8 per cent in the 12 months to July 2009.

The core annual inflation rate – closely watched by the Bank of Canada – dropped to 1.8 per cent from 1.9 per cent in June.

 

Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here.