Canada: Inflation accelerates in September
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. According to Statistics Canada, prices rose for four of the eight major components that make up the index, while three declined. The shelter index remained unchanged. The print mainly reflected an increase in the price of the recreation, education and reading category.
Inflation edged up to 1.3% in September from 1.1% in August. September’s result was below market expectations of a 1.4% rise and remains within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in September matched August’s 1.4%. Core inflation, which excludes volatile items such as gasoline and fresh food, also matched August’s reading of 1.8% in September.
Author: Luis Lopez Vivas, Economist