Canada: Inflation increases to 13-month high in December
January 22, 2016
In December, seasonally-adjusted consumer prices recorded a 0.1% increase, which was broadly in line with November’s 0.2% increase. According to Statistics Canada, four of the eight components of the index increased, with the food category registering the largest change.
Inflation was 1.6% in December, up from 1.4% in November. December’s result was just below the 1.7% expected by the markets but marked the highest rate in over a year. December marked the second consecutive month in which headline inflation was within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in December was steady at November’s 1.1%. Annual core inflation, which excludes volatile items such as gasoline and fresh food, decreased slightly from 2.0% in November to 1.9% in December.
Author: Robert Hill, Economist