Canada Inflation October 2018


Canada: Inflation recovers in October

November 23, 2018

Seasonally-adjusted consumer prices rose 0.3% from a month earlier in October, contrasting September’s 0.1% fall. According to Statistics Canada, the increase was largely driven by higher prices for transportation and food, while prices for recreation, education and reading also increased in October over the previous month.

Inflation ticked up to 2.4% in October, from 2.2% in September and slightly above analysts’ expectations of 2.2%. Meanwhile, annual average inflation inched up to 2.3% in October, from 2.2% a month earlier. Core inflation, which excludes volatile items including fuels and fresh produce, edged up to 1.6% from 1.5%. Despite the rise in inflation, the Bank of Canada is likely to keep rates unchanged at next month’s monetary policy meeting.

In its October monetary policy report, the Bank of Canada forecast inflation averaging 2.0% in 2019 and 2020. FocusEconomics Consensus Forecast analysts see inflation averaging 2.1% in 2019, which is unchanged from last month’s forecast. For 2020, our panelists project inflation to average 2.0%.

Author:, Economist

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Canada Inflation Chart

Canada Inflation October 2018 0

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

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