Canada Inflation


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.

The Bank of Canada expects headline inflation to be between 0.9% and 1.4% for 2015, according to its July Monetary Policy Report. For 2016 the Bank expects average inflation of about 2.0%. FocusEconomics Consensus Forecast panelists expect inflation to average 1.1% in 2015, which is unchanged from the previous month’s forecast. The panel expects inflation to average 2.0% in 2016.

Author:, Economist

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Canada Inflation Chart

Canada Inflation August 2015 0

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

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