In October, consumer prices rose 0.4% over the previous month, adding to the 0.2% increase registered in September. The reading came in above market expectations, which had predicted consumer prices would rise 0.2%. As a result, annual headline inflation stepped up to 2.4% in October (September: +1.9% year-on-year), the highest level in two years. The main drivers behind the annual increase were higher energy prices (+9.1% yoy) and food prices (+2.2% yoy). Annual core inflation, which excludes oil and fresh food, stepped up to 1.8% in October (September: +1.5% year-on-year) but still remains below the 2.0% target set by the Bank of Canada (BoC). Despite the continued upward inflationary pressure, the Central Bank remains unlikely to raise interest rates, provided inflation does not increase further, as there is still uncertainty in the markets. The Bank of Canada forecasts inflation to average 2.1% in the fourth quarter of 2010. Consensus Forecast panellists expect inflation to average 1.7% this year, which is unchanged from last month's forecast. In 2011, the panel expects inflation to accelerate to 2.0%.
Inflation rises to highest level in two years
November 23, 2010
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Canada Economic News
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.
September 30, 2016
In July, GDP grew a strong 0.5% over the previous month in seasonally-adjusted terms.
September 23, 2016
In August, seasonally-adjusted consumer prices recorded a 0.1% decrease over the previous month, which was down from the flat figure recorded in July and marked the lowest reading in six months.