Canadian July Inflation Rate Highest Since March 2003

Canada’s annual inflation rate hit 3.4% in July – the highest level since March 2003 – mainy due to higher gas prices according to CBC News.

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Statistics Canada said July’s annual price increase was up from the 3.1% rise seen in June. Taking gas out of the equation , the one-year price increase 2.1%, up from 1.8% in June. Driven by higher for oil globally, prices at the gas pumps rose 28.6 per cent between July 2007 and last month.

The article also highlighted a change in mortgage interest charges as they increased by 8.5% from July ’07 to July ’08, but that was down from the 9% rise in the 12 months to June.

Stats Canada said, “The slowdown in the rise in mortgage interest cost was due more to a softening of new housing prices rather than to lower mortgage interest rates”, and we reported on the house price declines earlier in the week.

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