Canada: Inflation edges up in January
February 17, 2012
In January, consumer prices increased a seasonally adjusted 0.5% over the previous month, which contrasted the 0.2% decrease seen in December. The monthly price rise mainly reflected higher prices in the transportation category, in particular those of fuel. Annual headline inflation edged up from 2.3% in December to 2.5% in January, which came in above market expectations of a 2.3% increase. Currently, inflation remains within the Central Bank's 2.0% 1.0 percentage point tolerance margin. Annual core inflation, which excludes volatile items such as gasoline and fresh food, rose from 1.9% in December to 2.1% in January. The Bank of Canada expects headline inflation to average 1.8% in 2012 and 1.9% in 2013.