Costlier trips to the supermarket fan overall inflation in July

“The ONS state that ”a smaller fall in clothing prices on the month compared with a year ago was the main contributor to the rise in inflation”.

The all-items consumer price index for Canada was up 1.3% during July from the same period one year ago, said the government agency Statistics Canada on Friday, matching the expectations in the market.

The bank estimates the underlying inflation trend at about 1.5 percent to 1.7 percent.

However, a decrease in the price of food and non-alcoholic beverages prevented the UK’s inflation from rising any further.

Both reports also said inflation has been weighed down by easing gasoline prices, which have plummeted by more than a fifth from past year, as crude oil costs continues to slide due to oversupply.

Core inflation, which strips out volatile items and is closely watched by the bank, rose to 2.4 percent, as forecast.

While energy and gasoline prices continued to fall, the declines were not as steep. It added that Atlanta Fed president Dennis Lockhart had said the U.S. central bank needs to be convinced inflation is approaching safe levels and nearing its 2 percent target, and the consumer price increases have fallen below monetary authorities targets for the past three years. Prince Edward Island’s CPI fell on a year-on-year basis for the eighth consecutive month, reflecting the relatively larger weighting of energy products in the provincial index. The July index for cakes, cupcakes and cookies was 279.4, up 0.6% from June and up 2.3% from July 2014. “As a result, we do not expect the Bank of Canada to move the policy rate until the second half of 2017″, notes TD Economics.