August 19, 2009
Canada experiences 2nd month of deflation
Consumer prices in Canada fell 0.9 percent in July on an annual basis, the second consecutive monthly decline, Statistics Canada reported Wednesday.
The decrease was due primarily to a 12-month decline of 23.4 percent in prices for energy products, particularly gasoline, the agency said.
Among the sectors where prices increased in July, the leader was food, which rose 5 percent, compared with increases of 5.5 percent in June and 6.4 percent in May. Within that sector, price increases for food purchased from restaurants rose 3.4 percent, following increases of 3.6 percent in June and 4 percent in May, StatsCan said.