Inflation Review - Plunging energy prices kept Calgary’s inflation rate low in July
In July, the headline inflation rate for the Calgary census metropolitan area (CMA) was 1.3 per cent year-over-year, after rising 1.7 per cent in June. Energy prices were the main reason behind the deceleration, which fell 13.3 per cent in the month.
Transportation costs shrank 0.7 per cent in July as gasoline prices tumbled 12.4 per cent compared to a year ago. Shelter cost inflation slowed to 0.1 per cent, largely due to the annual decline of 30.7 per cent in natural gas prices. Conversely, food prices remained elevated in July at 3.7 per cent year-over-year.
The primary driver of food inflation continued to be meat prices, which recorded a gain of 7.9 per cent year-over-year. Prices for other commonly purchased food items from stores also jumped: fruits and nuts (+3.9 per cent), vegetables (+3.8 per cent), fish and seafood (+3.8 per cent), bakery products (+3.2 per cent), and dairy products (+1.5 per cent). Overall, the lower Canadian dollar has placed upward pressure on frequently imported food products.
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