OTTAWA — The country’s annual inflation rate rose 2.5 per cent in June as consumer prices grew at their fastest pace in more than six years.
Statistics Canada’s latest inflation number received a boost from higher energy prices, especially gasoline, and follows a 2.2 per cent reading for May.
Inflation reached its highest point last month since February 2012 to move farther away from the two per cent mid-point of the Bank of Canada’s target range.
The central bank recently predicted inflation to move as high as 2.5 per cent — due to temporary factors like higher gas prices — before it settles back down to two per cent late next year.
The average of Canada’s three measures of core inflation, which leave out more-volatile data like pump prices and are closely watched by the central bank, rose slightly last month to 1.96 per cent.
In a separate report, Statistics Canada says retail sales expanded by two per cent in May thanks to higher sales for cars, auto parts and gasoline. The increase follows an April contraction of 0.9 per cent.
The Canadian Press