The price of food was up 3.4 per cent compared with a year ago as the price of meat increased 6.6 per cent. Prices were also up for dairy products, fresh fruit and baked goods.
Montenegro’s consumer price inflation slowed in June after accelerating in the previous month, figures from the Statistical Office showed Thursday.
The Bank of Canada cut interest rates two days ago saying a weak economy threatened to keep inflation from returning to a 2 percent target, and the “trend” of prices was between 1.5 percent and 1.7 percent.
The Fed is looking for inflation to firm gradually as it considers when to raise short-term interest rates, which have been near zero since December 2008. “A rise could come as soon as September, when policymakers will have seen what’s likely to be a chunky GDP number for the second quarter”.
On a monthly basis, consumer prices edged up 0.1 percent in June. Egg prices have soared due to a widespread outbreak of avian influenza at some of the country’s biggest chicken farms. Prices at the pump rose 3.4 percent in June on top of a 10.4 percent increase in May.
The consumer price growth was partly due to the continued increase in energy prices, which jumped by 1.7% in June after surging up by 4.3% in May.
Energy costs fell 9 percent in June from 12 months earlier, less than May’s 11.8 percent rate of decline. Gasoline prices remain 23.3% below year-earlier levels.
The Labor Department said the advances more than offset decreases in prices for medical care, household furnishings and operations, used cars and trucks, and apparel.
“The stronger dollar has pushed down the prices of imported goods, and that, in turn, has put downward pressure on core inflation”, Federal Reserve Chairwoman Janet Yellen said in a speech last week.
Statistics Canada said the core index was up 2.3 per cent from a year ago. “However, these downward pressures seem to be abating”. Persistently low inflation is a worry for the economy because it can slow the pace of wage increases and make it more difficult for households and businesses to pay off debts. The adjusted core rate of inflation quickened to 0.3 percent from 0.2 percent.