Inflation rises to 1.9% in June as vehicle price hikes accelerate

Statistics Canada says the pace of inflation accelerated in June as consumers paid more for new and used vehicles.The annual inflation rate rose to 1.9 per cent last month, up from 1.7 per cent in May.

StatCan says gas prices were nearly unchanged in June, but because prices were falling faster this time last year, the annualcomparisons pushed overall inflation higher.

The agency says used vehicle prices rose year-over-year in June for the first time in 18 months thanks to tighter inventories.Canadians were also paying more for furniture and other durable goods last month but did get a bit of relief from lower inflation on food and shelter costs.

The Bank of Canada's closely watched core inflation metrics meanwhile showed no signs of easing last month.