Canada: Inflation hits midpoint of Central Bank target range in January
February 19, 2016
In January, seasonally-adjusted consumer prices recorded a 0.2% increase over the previous month, which was broadly in line with December’s 0.1% increase. According to Statistics Canada, six of the eight components of the index increased, with only transportation as well as clothing and footwear decreasing.
Inflation was 2.0% in January, up from 1.6% in December. January’s result was above the 1.7% expected by the markets and marked the highest rate in over a year. January’s figure was right in the middle of the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in January was 1.2%, up from December’s 1.1%. Core inflation, which excludes volatile items such as gasoline and fresh food, increased slightly from 1.9% in December to 2.0% in January.
Author: Robert Hill, Economist