Canada Inflation

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Canada: Inflation increases to 11-month high in November

December 18, 2015

In November, seasonally-adjusted consumer prices recorded a 0.2% increase, which matched the result tallied in October. According to Statistics Canada, five of the eight components of the index increased, with the transportation category registering the largest change.

Inflation was 1.4% in November after having come in at 1.0% in the previous two months. November’s result was just below the 1.5% expected by the markets but marked the highest print so far this year. Moreover, inflation is now within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in November was 1.1%, down from 1.2% in October. Annual core inflation, which excludes volatile items such as gasoline and fresh food, decreased slightly from 2.1% in October to 2.0% in November.

The Bank of Canada expects headline inflation to average 1.6% for 2016, according to its October Monetary Policy Report. For 2017 the Bank expects average inflation of about 2.0%. FocusEconomics Consensus Forecast panelists expect inflation to average 1.9% in 2016, which is unchanged from the previous month’s forecast. The panel expects inflation to average 2.0% in 2017.


Author:, Economist

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Canada Inflation November 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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