🇨🇦 Canada July Headline Prices Rise By 3.7%

*CANADA JUL. CORE INFLATION RATE 3.3% Y/Y, PREV. 2.7%

*CANADA JUL. INFLATION RATE 3.7% Y/Y; EST. 3.4%

*Bank of Canada's average of preferred inflation measures ticks higher to 2.47% in from 2.27%

StatCan:

• Prices rose at a faster pace year over year in six of the eight major components in July, with shelter prices contributing the most to the all-items increase. Conversely, prices for clothing and footwear as well as alcoholic beverages, tobacco products and recreational cannabis slowed on a year-over-year basis in July compared with June.

• Year over year, prices for gasoline rose less in July (+30.9%) than in June (+32.0%). A base-year effect continued to impact the gasoline index, as prices in July 2020 increased 4.4% on a month-over-month basis when many businesses and services reopened.

• The homeowners' replacement cost index, which is related to the price of new homes, continued to trend upward, rising 13.8% year over year in July, the largest yearly increase since October 1987.