Canadian inflation grew at a 1% annual rate in June, up from 0.9% in May, according to new data from Statistics Canada.
Higher food prices helped lead the June 2015 inflation increase, as consumers paid 3.4% more than they did in June 2014. The price of meat continued to increase, up 6.6% from June 2014. Dairy products cost 2.5% more than they did in June 2014, and the price of fresh fruit increased by 3.3%
The cost of shelter increased by 1% on an annual basis, accelerating from a 0.5% gain in May. Home insurance and mortgage insurance cost 9.2% more than they did in June 2014.
On Wednesday, the Bank of Canada cut its key interest rate from 0.75% to 0.5% in the face of a sluggish economy. The central bank adjusts that interest rate to try and keep core inflation between 1-3%.
Core inflation, which excludes volatile items like food and energy, increased at a 2.3% annual rate in June.
Lower energy prices helped keep inflation from rising further in June. Gasoline prices were down 14.1% from June 2014, slightly less than the 17.4% annual decline in May.
On a monthly basis, gas prices increased 6% from May to June.
Statistics Canada's index of natural gas prices decreased by 10.9% over the 12 months to June, and fuel oil prices fell by 17.8% during the same period. Electricity prices, however, rose by 3.2%.
Without the moderating effect of cheap energy prices, inflation increased 2.1% from last June.
