Urgent
THE CANADIAN PRESS
OTTAWA — Statistics Canada says annual inflation rose by three-tenths of a percentage point to 1.5 per cent last month after a major plunge in May that had taken the index to the lowest level in almost two years.
Economists had anticipated an increase and cautioned that the uptick should not be interpreted as a signal of building inflationary pressures.
On a month-to-month basis, the consumer price index fell 0.4 per cent from May.
The increase in the annual rate was mostly attributed to base-effects to June 2010, when gas prices were receding and the cost of new automobiles fell by over three per cent.
Earlier in the week, the Bank of Canada said it expects overall inflation to remain below its two per cent target for about a year.
08:41ET 20-07-12

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