Canadian CPI Declines by 0.4% in June, Annual CPI Increased 1.5% - 20.7.2012

The Consumer Price Index in Canada rose 1.5 per cent in the 12 months to June, up from 1.2 per cent increase in May according to Statistics of Canada. At the same time, on monthly basis the CPI declined by 0.4 per cent in June compared to a 0.2 per cent advance in May. Economists were expecting the annual CPI to increase 1.7 per cent in June and on monthly basis to decline by 0.2 per cent. Furthermore, the Statistics of Canada reported that the increase in the CPI in the last year was due to higher prices for passenger vehicles and to a lesser extend for electricity. The Core CPI on monthly basis also declined by 0.4 per cent while the annual Core CPI increased 2.0 per cent. Finally, the Loonie weakened against the greenback as CPI increased, the USDCAD penetrated earlier today the resistance at 1.0087 and after the announcement of CPI rose to 1.0124.