Canada: Inflation picks up markedly in November
December 21, 2017
Seasonally-adjusted consumer prices rose 0.5% in November from the prior month, up from October’s 0.2% rise. According to Statistics Canada, November’s increase was primarily due to higher transport prices. Health and personal care was the only sub-sector to record a month-on-month decline in prices.
Inflation came in at 2.1% in November, up significantly from October’s 1.4% but still comfortably within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Meanwhile, annual average inflation ticked up from 1.5% in October to 1.6% in November. Core inflation, which excludes volatile items including gasoline and fresh food, rose from 0.9% to 1.3%.
Canada Inflation Forecast
The Bank of Canada expects inflation to average 1.7% in 2018 and 2.1% in 2019. FocusEconomics Consensus Forecast panelists foresee inflation averaging 1.9% in 2018, which is unchanged from last month’s forecast. For 2019, our panelists expect inflation to average 2.0%.
Author: Christopher Thomas, Economist