In February, consumer prices increased 0.3% over the previous month, matching the rate observed in January. The reading was slightly below market expectations of a 0.4% rise. Annual headline inflation inched down from 2.3% in January to 2.2% in February. Higher prices for energy (+10.6% year-on-year) continued to be the key inflation driver and increased at a faster pace than in January (+9.0% yoy). On the other hand, clothing and footwear prices as well as recreation, education and reading prices fell in February. Annual core inflation, which excludes oil and fresh food prices, fell from 1.4% in January to 0.9% in February, the lowest level since January 1984 and remains well below the 2.0% target set by the Bank of Canada. The drop in core CPI is purely transitory and associated with a sharp drop in hotel prices in February after they peaked during the Vancouver Olympics in 2010. The Bank of Canada forecasts headline inflation to average 2.1% in 2011 and 1.9% in 2012.
Base effect causes core inflation to slip to a record low in February
March 18, 2011
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Canada Economic News
October 21, 2016
In September, seasonally-adjusted consumer prices increased 0.2% from the previous month, which contrasted the 0.1% decrease recorded in August and marked the highest print in three months.
October 19, 2016
At its 19 October policy meeting, the Bank of Canada (BoC) decided to maintain its target for the overnight rate at 0.50%, despite a weaker inflation and growth outlook.
October 11, 2016
The Teranet-National Bank National Composite House Price index rose 0.7% in September from the previous month, which followed the 1.5% increase in August.
October 8, 2016
Seasonally-adjusted annualized housing starts registered 220,600 units in September, according to the government-owned Canada Mortgage and Housing Corporation (CMHC).
October 7, 2016
The Ivey Purchasing Managers’ Index (PMI), sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, increased a seasonally-adjusted 6.1 points in September, rising from 52.3 in August to 58.4.