Canada: Inflation accelerates to over two-year high in April
May 23, 2014
In April, consumer prices increased a seasonally-adjusted 0.2% over the previous month, which was slightly below the 0.3% rise recorded in March. According to Statistics Canada, the overall price increase reflected higher prices in six of the eight categories measured, with shelter and clothing and footwear registering the largest gains. Conversely, the largest price decline was recorded in the recreation, education and reading index. Annual headline inflation rose from 1.5% in March to 2.0% in April, which was in line with market expectations and marked the highest inflation rate since February 2012. Inflation remains well anchored within the Central Bank's tolerance margin of plus/minus 1.0 percentage points around its target of 2.0%. Meanwhile, annual average inflation inched up from March's 1.1% to 1.2% in April, thus indicating a positive trend. Core annual inflation, which excludes volatile items such as gasoline and fresh food, edged up from 1.3% in March to 1.4%.
Author: Armando Ciccarelli, Head of Data Solutions