Economics: Canadian inflation picture looks positive

Though the Canadian Consumer Price Index rose by 2.5% in June, inflation in the economy is slowing. ...

Though the Canadian Consumer Price Index rose by 2.5% in June, inflation in the economy is slowing. That said, Peter Bickley, chief economist at Tilney, says this calculation may be higher than the underlying inflation figure as in Canada it is calculated using homeowners' depreciation costs. The figure is determined using estimated new housing prices for the whole region, excluding land, which rose 7.4% from June 2005 to June 2006, thereby, pushing up the CPI, he says. Bickley adds that this will not be accurate when looking at regions on an individual basis. For example, Alberta hous...