Canada: Inflation steady in August
September 18, 2015
In August, seasonally-adjusted consumer prices recorded flat growth, which was down from a 0.2% increase recorded in July. According to Statistics Canada, six of the eight components of the index increased. The largest increases were recorded in the clothing and footwear, and the household operations, furnishing and equipment indices.
Inflation was unchanged in August, coming in at 1.3% for the second month in a row and matching market expectations. As a result, inflation is steady just above the lower bound of the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in August also mirrored July’s result of 1.4%. However, annual core inflation, which excludes volatile items such as gasoline and fresh food, eased from 2.4% in July to 2.2% in August.
Author: Robert Hill, Economist