Canada Inflation


Canada: Inflation ticks up in May

June 19, 2015

In May, consumer prices rose a seasonally-adjusted 0.4% over the previous month, which contrasted April’s 0.1% decrease and represented the highest figure since February 2013. According to Statistics Canada, seven of the eight components of the index increased, with the exception being clothing and footwear.

Annual headline inflation inched up from April’s reading of 0.8% to 0.9% in May, narrowly overshooting market expectations by 0.1 percentage points. As a result, inflation remains below the target range of 2.0% plus/minus 1.0 percentage point. Annual average inflation in May came in at 1.6%, which was slightly below April’s reading of 1.7%. Annual core inflation, which excludes volatile items such as gasoline and fresh food, inched down from 2.3% in April to 2.2% in May.

The Bank of Canada expects headline inflation to close 2015 and 2016 at 1.4% and 2.0%, respectively, according to its April Monetary Policy Report. FocusEconomics Consensus Forecast panelists expect inflation to average 1.0% in 2015, which is up 0.1 percentage points from the previous month’s forecast. The panel expects inflation to average 2.1% in 2016.

Author:, Economist

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Canada Inflation Chart

Canada Inflation May 2015

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

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