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.
Author: Steven Burke, Economist