Canada Inflation April 2016

Canada

Canada: Inflation climbs in April

May 20, 2016

In April, seasonally-adjusted consumer prices recorded a 0.2% increase over the previous month, which matched March’s nine-month-high. According to Statistics Canada, six of the eight components of the index increased over the previous month, while the food component and the recreation, education and reading component declined.

Inflation was 1.7% in April, up from 1.3% in March. April’s result was in line with market expectations and remains within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in April inched up from March’s tally of 1.2% to 1.3%. Core inflation, which excludes volatile items such as gasoline and fresh food, increased from 2.1% in March to 2.2% in April.

The Bank of Canada expects headline inflation to end 2016 at 1.5%, according to its April Monetary Policy Report. For 2017, the Bank expects inflation to close the year at 2.0%. FocusEconomics Consensus Forecast panelists expect inflation to average 1.9% in 2016, which is unchanged from the previous month’s forecast. The panel expects inflation to average 2.0% in 2017.


Author:, Economist

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Canada Inflation April 2016

Note: Year-on-year and month-on-month variation of seasonally adjusted consumer price index in %.
Source: Statistics Canada (SC).


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