Inflation Moves To 2.5%
CBJ — The annual inflation rate was up to 2.5% in June as consumer prices increased at their most rapid pace in more than six years. Inflation in May was 2.2%.
Much of the inflationary upswing can be pointed to higher energy prices, which in turn resulted in higher airline tickets. Mortgage rate interest moving up and more expensive meals at restaurants were also primary factors.
The good news is that the cost for telephone services, digital equipment and travel tours actually declined.
The numbers posted in June put inflation at its highest point since February 2012 when it was 2.6%.
The target set by The Bank of Canada is an even 2.0%.