Inflation rises to 1.8 per cent in July
Posted August 20, 2010 7:11 am.
This article is more than 5 years old.
OTTAWA, Ont. – Canada’s inflation rate rose 0.5 of a percentage point in July to 1.8 per cent.
It’s the fastest rise since April, but the core rate was unexpectedly slow, dropping to 1.6 per cent from 1.7 per cent.
Statistics Canada said changes in sales taxes in Nova Scotia, Ontario and British Columbia affected consumer prices in July.
The governments of British Columbia and Ontario introduced new harmonized sales taxes in July. Nova Scotia also bumped up its HST by two percentage points.
The Bank of Canada had forecasted the new taxes would increase inflation in the coming months.
Prices were higher across the board, with increases in seven of the eight major components. Only clothing and footwear registered a decrease.
Energy prices were up 7.9 per cent from where they were a year earlier. Within the energy price index, the cost of electricity rose 9.8 per cent in July.
Regionally, consumer prices rose in every province except Manitoba. Ontario registered the largest year-over-year increase as consumer prices rose 2.9 per cent, followed by a two per cent increase in British Columbia.
