Canada: Inflation inches down from January's over two-year high
March 24, 2017
In February, seasonally-adjusted consumer prices declined 0.2% from a month earlier (January: +0.7% month-on-month), which marked the steepest monthly drop in a year. According to Statistics Canada, prices fell in three of the eight major subcomponents of the index. The transportation subcomponent recorded the largest decline, while shelter and household operations, furnishings and equipment prices registered small decreases. Food prices were stable from a month earlier in February.
Inflation inched down to 2.0% in February from 2.1% in January, which had marked the highest print in more than two years. February’s result landed at the midpoint of the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Meanwhile, annual average inflation in February rose to 1.5% from January’s 1.4% print. Core inflation, which excludes volatile items including gasoline and fresh food, was unchanged from January at 1.7%.
Author: Christopher Thomas, Economist