Canada's consumer inflation rises to 3.3% in July

By Ovunc Kutlu

ISTANBUL (AA) - Canada's annual consumer inflation came in at 3.3% in July, rising from the 2.8% annual gain recorded in June, according to the country’s statistical authority on Tuesday.

The figure is higher than market expectations of a 3% increase.

It, however, reflects a significant slowdown since the 8.1% gain last June, which was the highest in 39 years.

"Acceleration in headline consumer inflation was mainly attributable to a base-year effect in gasoline prices," Statistics Canada said in a statement.

Excluding gasoline, the consumer price index (CPI) increased 4.1%, rising from a 4% gain in June.

On a monthly basis, the CPI rose 0.6% in July, following a 0.1% gain in June, due to higher monthly prices for travel tours, with July being a peak travel month, according to the agency. On a seasonally adjusted monthly basis, the CPI rose 0.5%.

Those figures also came higher than market estimates of a 0.3% increase.

The Bank of Canada hiked interest rates by another 25 basis points on July 12 as the central bank continues its policy of quantitative tightening to fight inflation.

The target for the overnight rate has been increased to 5%, with the bank rate now at 5.25% and the deposit rate climbing to 5%.