(MENAFN- Baystreet.ca) Inflation in this country eased somewhat last month, and Statistics Canada also says lower energy prices proved the main agent.
The agency said the consumer price index slowed in June to 2.0% from 2.4% in May. The June reading came the week after the Bank of Canada predicted the indicator would start falling.
The rate matched analyst forecasts. Moreover, June marked the third month in a row that the rate has met or exceeded the Bank of Canada's 2.0% target for inflation.
The central bank has held interest rates steady since last October as it watches how the domestic economy recovers from a recent slowdown. The bank is not expected to move again for the rest of the year
The BoC last week projected the overall inflation rate would dip to around 1.6% in the third quarter because of the dynamics of gasoline prices and other temporary factors before recovering to around 2.0% in the fourth quarter.
Although two of the Bank of Canada's measures of core inflation remained above 2%, CPI common - which the central bank says is the best gauge of the economy's underperformance - was unchanged at 1.8%.
Energy prices fell 4.1% year-over-year in June as Canadians paid less for gasoline and other fuels. Oil prices dipped amid rising U.S. fuel inventories and the elimination of carbon pricing in Alberta.
But consumers are paying more for other products - notably fresh vegetables, where prices jumped 17.3%, the largest increase seen since January 2016. The rise, which follows a similar gain in May, was due in part to inclement weather in agricultural regions.
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