Canada Inflation October 2021

Canada

Canada: Inflation rises further in October

November 17, 2021

Consumer prices increased a seasonally-adjusted 0.49% over the previous month in October, a weaker increase than September's 0.56% rise. Looking at the details of the release, prices for food and beverages, and transport increased at a softer rate in October relative to the previous month.

Inflation edged up from 4.4% in September to 4.7% in October. October's result marked the highest inflation rate since February 2003. Annual average inflation rose to 2.7% in October (September: 2.4%). Finally, core inflation rose to 3.8% in October, from the previous month's 3.7%.

Commenting on the latest inflation reading, Royce Mendes, senior economist at CIBC World Markets, noted:

“The Bank of Canada had already penciled in a heady 4.8% average inflation rate for the fourth quarter of this year. As a result, this print shouldn’t do much to alter the thinking at the Bank of Canada. In fact, there are growing signs that some of the drivers of this spate of high inflation are leveling off.”

FocusEconomics Consensus Forecast analysts, see inflation averaging 3.2% in 2022, which is up 0.1 percentage points from the previous month’s forecast. For 2023, our panelists see inflation averaging 2.7%.


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Canada Inflation October 2021

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


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