Canada Inflation February 2017


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%.

In its January monetary policy report, the Bank of Canada reported that it expects inflation to average 1.8% in 2017 and 1.9% in 2018. FocusEconomics Consensus Forecast panelists expect inflation to average 2.0% in 2017, which is up 0.1 percentage points from last month’s forecast. Our panelists also expect inflation to average 2.0% in 2018.

Author:, Economist

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Canada Inflation Chart

Canada Inflation February 2017 0

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

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