Canada inflation rate edges up as higher food costs offset cheaper fuel

Financial Post

Canada’s annual inflation rate edged up in June, but cheaper energy prices helped keep it at the lower end of the central bank’s target range, data from Statistics Canada showed on Friday.

Annual inflation was 1 per cent last month, up from 0.9 per cent in May and in line with analysts’ forecasts. The increase was led by higher prices for food, with consumers paying 3.4 per cent more than the same period a year earlier. Prices for food bought in stores were up 3.6 per cent, due to the higher cost of meat.

While the impact of energy was less pronounced than in recent months, cheaper prices continued to weigh, with the energy index tumbling 9 per cent in the 12 months to June. Excluding energy, inflation was 2.1 per cent.

Core inflation, which strips out volatile items and is closely watched by the Bank of Canada, was less…

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