Annual inflation rate turned negative in June

by CBC news — July 17, 2009

Lower gasoline prices helped Canada's annual rate of inflation turn negative in June for the first time since 1994.

Statistics Canada reported Friday that the 12-month Consumer Price Index fell to minus 0.3 per cent last month. The June decrease matched the expectations of economists.

"The decrease was due primarily to a 12-month decline of 19 per cent in prices for energy products, particularly gasoline,"Statistics Canada said, adding that the CPI actually rose 2.1 per cent in June when energy costs are factored out.

Gasoline prices dropped 24.3 per cent between June 2008 and June 2009, following a 12-month decline of 25.1 per cent in May.

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Source:CBC top stories