Inflation Rises in July

The cost of goods was higher in this country than the month before, according to figures released Friday morning by Statistics Canada.

The agency says Canada's annualized inflation rate in July was 1.2% up from 1% in June, adding the increase was in line with estimates.

In the 12 months leading up to July, prices were up in six of the eight major areas tracked, with the transportation and shelter indexes contributing the most to the year-over-year rise in the consumer price index.

Consumers paid 4.6% more for gasoline in the 12 months to July, helping to drive transportation costs higher by 1.9%, following a 0.6% increase in June.

They also paid more for passenger vehicles, which saw prices increase 0.2%after declining 0.2% the previous month.

The shelter index increased 1.3% year-over-year in July, after rising 1.6% in June. Homeowners' replacement costs contributed the most to the gain in prices, rising 4.1% in the 12 months to July.

Prices for natural gas, up 9.7%, increased at a slower year-over-year rate than they did in June. Meanwhile, the electricity index recorded its largest decrease since April 2003, down 9.1% year over year in July, following a 5.3% decline in June. The decline at the national level largely reflected legislated price declines in Ontario.

Consumer prices for food rose 0.6% on a year-over-year basis in July, matching the gain in June.