In September, consumer prices rose 0.2% over the previous month, which contrasted the 0.1% drop recorded in August. Nonetheless, the reading overshot market expectations, which had seen consumer prices increasing only 0.1% over the previous month. As a result, annual headline inflation stepped up to 1.9% in September (August: +1.7% year-on-year), the highest level observed since January. The main drivers behind the annual reading were higher prices for food, which added 2.1% year-on-year as well as energy costs, which rose 5.6% compared to September 2009. Meanwhile, annual core inflation, which strips out gasoline and other volatile items, inched down to 1.5% in September (August: +1.6% yoy), and thus remained below the 2.0% target set by the Bank of Canada (BoC). Since the beginning of the third quarter, headline inflation entered an upward trend, with core inflation ? which is the reference for the BoC policy making ? trending in the opposite direction, corroborating the Bank's decision to halt the tightening cycle. Against this backdrop, the BoC revised its inflation forecasts downwards. According to the October Monetary Policy Report, the Bank expects headline inflation to average 1.7%, 2.0% and 1.9% in 2010, 2011 and 2012 ? against 1.8%, 2.1% and 2.0% reported in July. Consensus Forecast panellists broadly share the Bank's assessment and expect inflation to average 1.7% this year, which is down 0.1 percentage points from last month's forecast. In 2011, the panel expects inflation to accelerate to 2.0%.
Inflation rises to highest level in eight months
October 22, 2010
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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.