Inflation Slowed Down

July 28, 2010

Slow Down by A25

The annual inflation rate in Canada slowed down a little in June, Statistics Canada has announced this week. Excluding the eight volatile items, the rate fell from 1.8 to 1.7 percent last month. Moreover, the consumer price index increased by its slowest pace in seven months, by only 1 percent.

Gasoline prices actually fell in June, for the first time since October 2008. If compared to June 2009, they were 2.9 percent down. To demonstrate how great this June decline is, let's just say that for instance in May of this year, prices of gas were about 6.9 percent higher than they were in May 2009. But not everything is falling, of course. For instance, car prices went up by 2.8 percent and homeowner replacement costs increased by 5.2 percent. Food prices rose too, by 0.7 percent, which is the smallest rise since March 2008.

We, the consumers, should be satisfied! I'm especially pleased about the gas prices. Isn't it nice? Even though the high parking prices I mentioned in my last article probably make up for them.