Consumer prices decline 0.3% in June

by Christine on 17/07/09 at 12:44 pm

Statistics Canada said the country's -0.3% inflation rate was primarily due to a 19% drop in energy prices, particularly gasoline.

Canada’s inflation rate for June was negative 0.3%, marking the first time since November 1994 overall prices have declined on a 12-month basis.

Statistics Canada said the decline in prices was primarily due to a 19% drop in energy prices, particularly gasoline. Excluding energy, prices were up 2.1% from a year earlier.

It marked the biggest drop in prices since 1955.

The inflation rate was 0.1% in May.

June’s annualized drop in prices was in line with expectations of analysts polled by Bloomberg.

The price for regular gasoline averaged $1.016 a litre last month, down more than 24% from $1.351 a litre a year earlier, Statistics Canada said Friday.

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