Annual inflation in Canada during June and July kept at 2%, which is the target of the Bank of Canada.
Statistics Canada reported on Wednesday that compared with a year earlier, consumers in the past month have paid less for gasoline, Internet service and accommodation during trips.
Prices have shown growth in other areas, such as the increasing cost of fresh vegetables by 18.9% compared to the previous year. The consumer price index also found higher costs on an annual basis on car insurance, mortgage interest and passenger of the vehicle.
The average value of the three indicators of core inflation in Canada, which are considered more accurate indicators of underlying price pressures by excluding volatile articles, there have been close to the target of the Central Bank of 2.03%. It’s a little rose from a revised 2 percent in June.
Themselves average and the main figures do not have any immediate pressure on the Bank of Canada, leading to adjustments in interest rates. The Central Bank can change the interest rate as a tool to try to stimulate or to slow down inflation.
But with the weakening global economic conditions related to the us-China trade war, some economists now expect Governor Stephen Poloz will cut interest rates this fall, possibly in September.
The canadian economy continues to show good results, despite growing alarm over global prospects.
A closer examination of the inflation data for July shows that the price of gasoline fell less than in the previous month. Fewer losses had a greater pressure on inflation, as consumers paid more for gas in July compared to June.
Not including retail gasoline prices, the Agency said that last month, the total annual inflation in this segment was 2.4%.
The report States that prices rose in all eight major categories compared to a year earlier. However, annual price pressures in the services index fell last month to 2.4 % compared to 2.8 per cent.
By regions, according to the report, the increase in consumer prices decelerated the most in Manitoba and British Columbia. Statistics Canada explained the slowdown in growth in the Manitoba lower tax on retail sales in the province since July 1.
On a monthly basis, according to the Agency, consumers paid 2.5% less for phone services in July compared with June. The fall followed the price changes in the industry, because wireless companies have faced increasingly fierce competition.
The Agency stated that reducing the cost of telephone rates was somewhat offset by higher prices for devices such as smartphones and tablets. From June to July, prices for these devices grew by 42.5%.