Canada Inflation Slows in June to 1% on Weaker Energy Prices

By Paul Vieira Features Dow Jones Newswires

Canada's inflation rate in June decelerated for the fourth time in five months and rose at its slowest pace since the fall of 2015, as the country joins the U.S. and other developed-world economies in dealing with the conundrum of weak pricing pressure amid improving growth prospects.

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Canada's all-items consumer-price index in June increased 1% from a year earlier, Statistics Canada said Friday, following a 1.3% advance in the previous month. June's result fell below already tepid market expectations for a 1.1% gain, according to economists at Royal Bank of Canada.

On a month-over-month basis, CPI in June declined 0.1%.

Lower energy and gasoline prices from a year ago were the main downward contributors on June CPI.

Meanwhile, the average rate of annual core inflation, based on three gauges used by the Bank of Canada, rose 1.4% in June, compared to 1.3% in May. The three measures --- which aim to get a better read on underlying price pressures in the economy -- ranged from 1.2% to 1.6%.

Write to Paul Vieira at paul.vieira@wsj.com

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(END) Dow Jones Newswires

July 21, 2017 08:45 ET (12:45 GMT)