Canada Inflation


Canada: Inflation inches up in July

August 21, 2015

In July, seasonally-adjusted growth in consumer prices came in at 0.2% over the previous month, falling from 0.4% in June. According to Statistics Canada, six of the eight components of the index increased. The largest increase was recorded in the clothing and footwear index.

Inflation inched up from June’s reading of 1.0% to 1.3% in July, coming in slightly below market expectations of 1.4%. As a result, inflation has moved further into the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in July came in at 1.4%, which was slightly below June’s reading of 1.5%. Annual core inflation, which excludes volatile items such as gasoline and fresh food, inched up from 2.3% in June to 2.4% in July.

The Bank of Canada expects headline inflation to close 2015 and 2016 at 1.4% and 1.9%, respectively, according to its July Monetary Policy Report. FocusEconomics Consensus Forecast panelists expect inflation to average 1.0% in 2015, which is up 0.1 percentage points from the previous month’s forecast. The panel expects inflation to average 2.1% in 2016.

Author:, Economist

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Canada Inflation Chart

Canada Inflation July 2015

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

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