Canada: Inflation jumps in October
November 21, 2014
In October, consumer prices rose a seasonally-adjusted 0.1% over the previous month, which was below the 0.2% increase recorded in September. According to Statistics Canada, higher prices were recorded in seven of the eight major components of the index. The only price decrease was recorded in the index for health and personal care.
Annual headline inflation in September accelerated, rising from 2.0% in September to 2.4% in October. The figure marked the highest inflation rate since June and surpassed market expectations of a 2.1% rise. Inflation is still well anchored within the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 2.0%. Annual average inflation continued on an upward trend and inched up from September’s 1.7% to 1.8% in October, which represented a 24-month high. Annual core inflation, which excludes volatile items such as gasoline and fresh food, also rose to 2.3% from September’s 2.1% figure.