Canada’s inflation rate in July rose to 1.2 per cent, up from 1 per cent in June, driven by higher transportation and shelter costs, Statistics Canada said Friday.
Canadians paid 4.6 per cent more for gasoline in July , driving transportation costs up by 1.9 per cent on a year-over-year basis in July, following a 0.6-per-cent increase in June.
They also paid more for passenger vehicles, which saw prices increase 0.2 per cent after declining 0.2 per cent the previous month. However, passenger vehicle insurance premiums rose at a slower rate in the 12 months to July than they did in June.
The shelter index increased 1.3 per cent year over year in July, after rising 1.6 per cent in June. Homeowners’ replacement costs contributed the most to the gain in prices, rising 4.1 per cent in the 12 months to July.
Consumers paid 9.7 per cent more for natural gas, while the electricity index recorded its largest decrease since April 2003, down 9.1 per cent year over year in July, following a 5.3-per-cent decline in June, driven by legislated price declines in Ontario.
Canadians also paid 2.2 per cent more for health and personal care, registering the largest gain since May 2011. This increase is partly attributable to the fact that consumers paid 4.4 per cent more for non-prescribed medicines, Statistics Canada said.
Clothing and footwear prices decreased 0.1 per cent in the 12 months to July, after a 1.7-per-cent decline in June.