OTTAWA – The consumer price index had registered two months of negative readings leading up to June, first with 0.2 per cent annualized decline in April, then a further 0.4 per cent drop in May.
The average economist estimate from data firm Refinitiv forecasted an annualized inflation rate of 0.3 per cent for the month.
#Breaking Inflation rebounding sooner than forecast from the April/May slump.
Canada June Consumer Price Index climbs 0.8% m/m and 0.7% y/y.
Up 1.2% excluding gasoline.
Stats Canada says the uptrend is the largest month to month gain since March 2011.
— mike eppel (@eppman) July 22, 2020
The turnaround from May to June matched the fastest acceleration in the headline inflation reading since March 2011.
Fuelling the rise was an increase in clothing and footwear after two months of declines as brick-and-mortar stores were closed due to COVID-19, while gasoline prices declined at a slower pace as economies reopened.
Statistics Canada says that excluding gasoline, the consumer price index rose 1.2 per cent in June.