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UPDATE 1-Canada's annual inflation rate stays steady at 1.5 percent

Published 2016-07-22, 08:35 a/m
UPDATE 1-Canada's annual inflation rate stays steady at 1.5 percent

(Adds details of release, background)

OTTAWA, July 22 (Reuters) - Canada's annual inflation rate remained at 1.5 percent in June, staying below the Bank of Canada's 2.0 percent target for a fifth consecutive month, Statistics Canada data indicated on Friday.

Analysts polled by Reuters had forecast the rate would dip to 1.4 percent. Prices rose by 0.2 percent from May.

Prices rose in all major components in the 12 months to June, with the shelter index posting a 1.6 percent gain and food prices rising by 1.3 percent.

The core inflation rate, which strips out the prices of some volatile items and is closely watched by the Bank of Canada, remained at 2.1 percent.

The central bank cut rates twice last year to help the economy deal with the shock of low oil prices. A Reuters poll on July 7 found markets expected the bank to stay on the sidelines for at least another year. CA/POLL

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic - Canada inflation, central bank rate:

http://link.reuters.com/cut67s Graphic - Canada economic dashboard:

http://graphics.thomsonreuters.com/15/sc-canada/index.html

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