Canada: Inflation stable in April
May 19, 2017
Seasonally-adjusted consumer prices in Canada rose 0.5% in April from a month earlier, rebounding from March’s 0.2% decline. According to Statistics Canada, prices rose in all but one of the eight major subcomponents of the index. The transportation subcomponent recorded the largest monthly increase, while clothing and footwear prices posted a decline from a month earlier.
Inflation was stable at March’s 1.6% in April, still below the midpoint of the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point—territory it occupied for much of 2016. Meanwhile, annual average inflation was also stable for a third consecutive month in April at 1.5%. Core inflation, which excludes volatile items including gasoline and fresh food, fell to 1.1% in April from 1.3 % in March.
Author: Christopher Thomas, Economist