Canada Inflation

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Canada: Inflation falls in November

December 19, 2014

In November, consumer prices fell a seasonally-adjusted 0.2% over the previous month, which contrasted the 0.1% increase recorded in October. According to Statistics Canada, lower prices were recorded in two of the eight major components of the index, with the largest price decrease recorded in the index for transportation.

Annual headline inflation in November decelerated, falling from 2.4% in October to 2.0%. The figure marked the lowest inflation rate in eight months and undershot market expectations of 2.4%. According to Statistics Canada, the decrease was largely due to falling gasoline prices. Inflation is well anchored within the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 2.0%. Annual average inflation continued on an upward trend and inched up from 1.8% in October to 1.9% in November, which represented a 26-month high. Annual core inflation, which excludes volatile items such as gasoline and fresh food, fell to 2.1% from October’s 2.3% figure.

According to its October Monetary Policy Report, the Bank of Canada expects headline inflation to average 2.0% in 2014 and 1.6% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 2.0% in 2015, which is unchanged from the previous month’s forecast. The panel expects inflation to also average 2.0% in 2016.


Author: Angela Bouzanis, Senior Economist

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Canada Inflation Chart


Canada Inflation November 2014

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


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