Annual inflation rate jumped to 3.0% in July, highest reading since 2011

Canada's consumer price index grew at its fastest pace since 2011 in June

However, investors shouldn't put too much stock in the July number because it was caused in part by the way Statistics Canada keeps track of the air transportation index, said Petursson.

Canada's inflation rate rose to its highest level since 2011 last month, as higher prices for airplane tickets, tourism and gasoline pushed the rate to three per cent.

Economists were expecting a year-over-year of 2.5%, same as in June, but July's number exceeded that, according to Statistics Canada.

CIBC economist Andrew Grantham told the Canadian Press that Friday's reading "at least modestly" increases the odds of a September interest hike.

"As such, while today's figures will likely support the C$ and result in increased speculation that the Bank could hike again as early as September, we continue to lean toward October for the next move", he said.

The Canadian dollar rose more than half a cent to 76.50 United States cents after the latest inflation report was released.

More news: US welcomes Saudi Arabia's pledge of $100 million for Syria

A 25.4 per cent increase in the price of gasoline and a 28.2 per cent increase in the cost of air transportation compared with a year ago helped push overall prices higher.

All eight components that the data agency tracks to come up with the rate were higher, and the inflation rate also rose in every single province.

Restaurant food has risen by 4.4 per cent in the past year, and mortgage interest costs are up by 5.2 per cent.

The Canadian dollar gained against its USA counterpart on Friday after the country's annual inflation rate accelerated by more than expected, increasing prospects that the Bank of Canada might raise interest rates next month.

BMO strategist and expert Benjamin Reitzes also noted in his Friday report that core inflation remained at 2% and that one month does not make a trend.

On the flip side, natural gas prices have declined by 5.7 per cent in the past year, and the price of telephone services has declined by 5.1 per cent.

Related News:



Most liked

North America: The State of NAFTA Talks, One Year Later
The two officials met in D.C.to resolve the issue surrounding the re-negotiation of the deal between the U.S., Mexico and Canada . Guajardo also sounded an optimistic note Friday, where he wrapped up his fourth straight week of discussions with Lighthizer.

Huawei Mate 20 Lite
WinFuture and fellow leaker Roland Quandt published several other "acquired" shots of the phone in gold and black. But if the curved design and high-end specs are anything to go by, it could very much be the high-end Mate 20 Pro.

Priyanka Chopra, Nick Jonas engagement festivities kick off
The roka ceremony happened on the morning of August 18, at Priyanka Chopra's house with a pooja for the couple. "My heart. After weeks of speculation and coy selfies , Nick Jonas and his fiancée Priyanka Chopra are finally Instagram official.

Russian Federation mulls response to US sanctions over North Korea: Ifax
Such commentaries are not statements or official positions, but can be read as a reflection of government thinking. The U.S. then followed up with sanctions of its own after president George W.

Jeanie Buss: 'They're Not Laker Fans if They're Not Happy About LeBron'
Speaking to ESPN's Jackie MacMullan for a video interview, Love revealed how he processed James leaving Cleveland for the Lakers . James is now set to embark on this next chapter of his career where he has a chance to add to his legacy with the Lakers .

Brighton beat Manchester United
Mourinho turned to two of England's World Cup heroes in Marcus Rashford and Jesse Lingard at the break in search of inspiration. The Iranian global was the top scorer in the Eredivisie last season and enjoyed an impressive World Cup for Team Melli.

2 million pilgrims reach Makkah, Hajj rituals to begin from tomorrow
But the kingdom has also tightened its grip on dissent, with around a dozen women's rights campaigners arrested in recent weeks. The accountant traveled to Saudi Arabia from Turkey where he has lived for five years since fleeing Aleppo in Syria.

White House lawyer McGahn isn't 'a John Dean type 'RAT
News of McGahn's extensive cooperation with Mueller is likely to complicate the already-strained relationship between the two men. Last year, Trump ordered Mueller fired but backed down after McGahn threatened to resign rather than follow his directive.

PawSox About To Become The WooSox
WBUR reported Thursday that a tentative deal, subject to approval, had been reached between the team and Worcester officials. The phrase has been suggested as a new nickname for the team, which is commonly called the PawSox.

Seamus Coleman proud to lead Everton
Although the Frenchman soon went off injured, Everton added a second when Richarlison headed home Walcott's whipped cross. Everton registered their first victory of the season as Richarlison scored the victor on his home debut.

Arizona Hospital Staff Has 16 Pregnant Nurses At Once
The intensive care nurses work at Banner Desert Medical Center in Mesa, which is about 20 miles from Phoenix. The nurses, who are due between September and February, will go on maternity leave for 12 weeks.

Trump blames DC, as military parade plans unravel over costs
But officials said the estimates were still preliminary and so were not submitted to Mattis or Gen. Big, heavy tanks could tear up streets in the District of Columbia.

Tyson Fury sees off Pianeta then confirms Deontay Wilder fight
Fury's promoter Frank Warren refused to say when and where the fight will happen, but the Gypsy King hinted it would be Las Vegas. Wilder climbed into the ring to join Fury, where he declared that their proposed fight is "officially on".

NV’s first 2018 human case of West Nile virus in Lyon County
More information about insect repellents can be found at https://www.cdc.gov/westnile/faq/repellent.html . 249 prior to the event. Lohagen says an infected mosquito can pass the virus along to humans, horses and birds.

Android Messages now has a dark mode and new Material Design
Apart from these features, Google has also implemented the Smart Reply option which was first rolled out to Gmail back in 2015. However, as noted by the folks at AndroidPolice the app shows inverted colors in conversations once the dark mode is enabled.