Canada Inflation April 2017


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.

In its April monetary policy report, the Bank of Canada revised its inflation expectations upward to 1.9% in 2017 and 2.0% in 2018. FocusEconomics Consensus Forecast panelists expect inflation to average 2.0% in 2017, which is unchanged from last month’s forecast. Our panelists also expect inflation to average 2.0% in 2018.

Author:, Economist

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Canada Inflation Chart

Canada Inflation April 2017

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

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