Canada’s inflation rate slows down in June

Canada’s inflation rate slowed to 1% in the 12 months to June 2010, following a 1.4% increase in May. The inflation rate is determined by the Consumer Price Index (CPI), which measures the pricing of selected, typical consumer goods and services over time.Statistics Canada noted homeowner’s replacement costs rose 5.2% in June, following a 4.4% increase in May. Also, Canadian “consumers also paid 5.3% more for passenger vehicle insurance premiums,” Statistics Canada says. Ontario had the highest June inflation rate, at 1.6%. “Prices for the purchase of passenger vehicles were up as were passenger vehicle insurance premiums,” Statistics Canada notes.The lower inflation rate in June has media analysts speculating about whether this may ultimately lead to somewhat higher interest rates.