Canada’s annual inflation rate in June posted its biggest jump in more than nine years as restrictions imposed to curb the coronavirus outbreak were lifted, Statistics Canada said on Wednesday, Trend reports with reference to Reuters.
The rate jumped to 0.7% from a 0.4% decline in May. Analysts polled by Reuters had expected the annual rate to increase to 0.3% in May. The 1.1 percentage point matches the increase seen between February and March 2011.
The main drivers of growth were recovering prices for energy, food, as well as goods such as passenger vehicles, clothing and footwear, Statscan said.
Gasoline prices declined by 15.7% compared to a 29.8% plunge in May “mainly as a result of higher demand coinciding with the gradual reopening of businesses and public services, as well as a general increase in local travel in June”, it added.
Meat prices rose 8.1% from June 2019. Overall, prices rose in nine of the 10 provinces.